SAS_OUTPUT is a user-created variable, so it has no meaning in the SAS language. To understand the meaning, you'll have to review the rest of the program(s) and see how it is used.
Since it's a 0/1 variable, it's likely that 0 means no and 1 means yes. And from the name, perhaps it's an on/off switch for the program to switch the generation of output reports (or output datasets) on or off.
This question is a good reminder to not create variable names that look like they might be system variables to avoid confusion. I have a personal convention of using a suffix of Ind(icator) or Flag for binary or yes/no variables. In this case that would mean variable names of Output_Ind or Output_Flag. I also highly recommend using mixed case as that indicates word boundaries and enhances meaning.
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