Apple TV 4K can now switch dynamic range based on the source with the release of tvOS 11.2 and its Match Content setting, a feature that was not enabled when the device first launched. Originally, even SDR signals were treated as HDR if HDR was enabled.
Now, when the Apple TV 4K detects an HDR signal, it will activate all the necessary image-enhancing properties, including the user interface, but leave it in SDR otherwise.
Aside from dynamic range switching, the device can now switch frame rate as well, solving another contentious issue where certain content rendered in lower frame-rates like 24p was displayed at 60fps.