This is how autotargeters work.

When you have one online, you will get +2 max targets as a passive ability. (I suggest only fitting the tech I module because IMO the T2 module isn't worth the CPU)

When you activate the module, it will cycle and then automatically start to lock any hostiles. A ship is hostile only if it's actively shooting or jamming you - people smartbombing you count; people who are red and locked-on but not shooting do not. It starts from the closest hostile, moving outward.

Note that if you attempt to target someone manually while the autotargeter is cycling, it won't lock anyone that cycle.

At the end of the cycle, targets that have been locked magically appear - you won't see the 'locking' bar increase in the HUD. Usually the targets appear in increasing range order, but ships with large signature radius will often be locked sooner than expected.

What it's good for is:

• ships targeting small ships or drones
• missions where locking on takes longer than actually killing ships (what a hassle)
• players with free high slots who would like a small bonus.