I turn it off - quite frankly I don't need it always on and turning it off saves battery so while I have 2 factor reasoning
It's my lack of need for it that genuinely drives why I turn it off.
I appreciate apple giving the option though either way as I know many enjoy their AOD on
Silent mode Graphic highlights general navigation within watchos10 Control center - bell icon
https://preview.redd.it/p85f5z4ore2c1.jpeg?width=1080&format=pjpg&auto=webp&s=7c18c8b661a32af4f60a49da734b1948f38be0c7
This link has a bit more information
https://support.apple.com/en-us/HT204793