How it works on silverware is that if you run the battery to low battery warning value, the led will flash. If the battery then rests while still powering the quad or comes out of voltage sag and returns to higher battery values, if hysteresis goes higher than the range it is set, the low battery warning will stop and you get steady normal led. For instance, setting it to 0.10 and low battery at 3.60 would mean that if you sag under or hit 3.60 with a punch out with old or poor batteries, the low battery warning will start. If you continue flying sedately, land the quad, or anything that allows the battery to return to a higher value than 3.70v (3.60 + 0.10 hysteresis), the low battery warning will stop. If the hysteresis is set high like 0.30 and you put a partially depleted battery of like 3.80 the low warning battery will flash. That’s how it reacts on my quads. Hoping that makes sense again and I’ve got it right.
So you could easily replicate it just by setting low battery at 3.9v and hysteresis at 0.20v, running down a battery till you get the warning. Disconnect and reconnect the battery (quad should flash low battery on reconnection), rebind and see if it arms.
Edit: silver summed it quite succinctly.