AirDrop's suggested row at the top of the share sheet isn't just proximity — it combines nearby devices with contact and interaction signals, so people you message or share with often tend to appear first. Apple doesn't publish the exact ranking, and the row can also include your own other devices signed into the same Apple Account.
Visibility is controlled on the receiving side, and the three options still work the same way: Receiving Off, Contacts Only (the default), and Everyone for 10 Minutes, which reverts to Contacts Only after ten minutes.
What changed recently: with iOS 26.2 (and iPadOS/macOS 26.2), sharing with someone who isn't in your contacts under 'Everyone for 10 Minutes' uses an AirDrop code — the recipient taps 'Get AirDrop Code', a six-digit code appears, and the sender enters it before the transfer proceeds. After a successful code exchange, that person is added to your 'Other Known' list in Contacts for 30 days (manageable via Settings → General → AirDrop → Manage Known AirDrop Contacts).
Devices that never appear: usually their receiving is Off, they're on 'Contacts Only' and you're not mutual contacts, or Bluetooth/Wi-Fi is off on either side.
Sources: https://support.apple.com/119857
— Osnivo Guides