Air-drop is basically a simple way to send something like a picture without having to send an email or text.
In order to have your iPhone ready to accept or send files:
- Select the settings gear
- Select General
- choose Receiving off (would not make sense if want to use it)
- Contacts Only
Open a photo and select the square with the up arrow (share button) - you will then see the user(s) who have AirDrop ready to accept the file.
If you are accepting a file, a pop-up window will appear and you can choose to accept or decline.
Embedded below is a 1 minute and 7 second YouTube tutorial.