I couldn't find an image that matched very well, but my best guess is that it's a fuel stop solenoid.
IF SO,
the stem extends to open a valve within the fuel injection pump.
When the stem is retracted, no fuel reaches the injectors.
It probably has two coils within it, and three or four wires, all connected to the key switch.
When the key is in the 'on' position, power is fed to the 'hold-in' winding.
When the key is in the 'start' position, power is fed to the 'pull-in' winding, which is not intended for continuous duty.
If the pull-in winding is burned out, e.g. from extended cranking when the engine wouldn't start for some other reason, the engine probably won't start even if you have fixed whatever else was wrong.
Is that why you have pulled it out?
Mike Halloran
Pembroke Pines, FL, USA