My impression was that “Auto” determined the type of modulation, regardless of which band the radio was receiving, rather a case of listening to the received signal and choosing the correct setting. What drew me to this determination was the air shows I attend. Some of the military flights use FM in a band designated as AM. Of course it could be that being so close to the transmissions just caused the scanner to receive an FM signal while in the AM mode and, because the signal strength was so strong, it sounded ok. So, in my ignorant bliss, I never questioned how the setting was determined, I just assumed my take on the subject was correct. ...Until now. The responses given so far state it’s a default setting, hard set in the firmware that is used when “Auto” is chosen. I’ve programmed my SDS100 to receive the same frequency twice, one set to AM and the other to FM at air shows in the past when I wasn’t sure of the mode used, in an effort to identify which mode to use and don’t recall my results. But hopefully, this year, I will get to try this again.