What was the problem?
That's how damage points work. You lose one for each track call. You can remove one for yourself during a track call by pressing the LC button. You can correct an incorrectly removed point by pressing LC. It will toggle back and forth between removing a point and not removing a point.
When you get down to zero, the car will go to it's predetermined safe speed, and I believe it will not count laps.
Unfortunately, in analog mode, if you have a pit lane with sensors, you can't access the pit menu to repair damage, so be sure to turn pit sensors off when running analog mode with pit lane features, including damage. At least, I think it won't work. In any case, if you stop and go into the pit menu, you can repair damage, which will restore your car to full damage points remaining (full health), and allow you to continue racing at normal speed.