As of calibre 1.11, this has been hidden. On the changelog at
http://calibre-ebook.com/whats-new:
Quote:
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Remove the button to toggle search result highlighting from next to the search bar, as too many people click it accidentally and then do not realize what they have done, despite the confirmation message that pops up. The button can be restored via Preferences->Searching
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If you go to Preferences ==> Interface ==> Searching there are two options. One to restore the button, one to toggle from settings without adding the button back.
For future reference, this thread should've been started under Calibre => Library Management, not Calibre => Recipes; that way it is more likely the right people find your thread to answer it.