From my understanding:
the four digit code is part of a longer eight digit code giving information about what the train is and where it's going. Possibly also where it came from?.
That I is a 1
The first digit is the class of train- 1 is an express passenger or mail, through various passenger, ECS and freight classes.
The next digit is a letter giving an approximation of the desination- where "E" meant though depends upon where the train is. Some letters have universal meaning, such as "Z" for special trains and "Q" for test/survey trains.
The next two numbers are an ID number, starting at 01 for the first train of the class and desination of the day.
They were mounted on the front to allow signal boxes to see them and route them accordingly- the codes could be looked up on TOPS. Still can, except, they're not displayed on the actual train anymore.
I am prepared to be shot down now.