@Linda Davis great question, and honestly it's one of those things that matters a lot more than people think when you're doing close-range tracker work on battery.
The short answer is the module doesn't do automatic TX power scaling based on RSSI out of the box — it runs at whatever power level is configured, which defaults to max. So yes, at 10 meters it's technically putting out the same power as it would for a long-range link unless you explicitly set it otherwise.
The good news is TX power is configurable through firmware, so if your tracker nodes are going to be operating at short range the whole time you can just set a lower output level and call it done — you'll get meaningful battery life improvement and reduce any interference footprint without sacrificing link quality at that distance. Worth playing with the AI Firmware Builder in the Dev Hub if you want a quick starting point for that kind of adaptive power logic; you could describe what you want and get something workable pretty fast.
That said, if your use case involves variable range — like sometimes the nodes are 10m apart and sometimes 500m — you'd want to implement your own RSSI-based power control in firmware rather than rely on anything automatic. It's not complicated, just not built into the default behavior.