This is the hydrophone from the USS Pampanito, but it's similar to the German KDB hydrophone apparatus. The "wheel" that you see the operator turning is what turns the hydrophone head. If something were making enough noise, you'd be able to hear it even if you didn't have the hydrophone head trained at the source's exact bearing, however pointing the hydrophone at the noise's source would be ideal.
As far as the switches on the hydrophone gear, I'm not sure what each one does.