Why do I not have the option for Lost Mode, or separation notifications in FindMy?

Monarch-mama,

Only AirPods (3rd generation), AirPods Pro, or AirPods Max have the option for Lost Mode.

If you have one of those models, these are the steps for turning on Lost Mode

Turn on Lost Mode:

1.) On your iPhone, iPad, or iPod touch, open the Find My app.

2.) Go to the Devices tab, and choose your AirPods.

3.) Scroll down to Mark as Lost, and select Activate.

4.) Follow the onscreen steps if you want your contact information to display for your missing AirPods.

5.) Select Activate.

Find your lost AirPods - Apple Support

If you have AirPods 1st or 2nd Generation, you would not be able to turn on Lost Mode.

Hopefully this helps to clarify.

Take care.

Hello, Monarch-mama and thank you for using Apple Support Communities.

From the article you've posted from explains the details about Find My app with AirPods: Find your lost AirPods - Apple Support

"Turn on Lost Mode for your AirPods

When you turn on Lost Mode for your AirPods (3rd generation), AirPods Pro, or AirPods Max, you can share a message with your phone number or email address. If someone finds your AirPods, they can see the message on their iPhone.

If your AirPods are offline

If your AirPods are out of range or need to charge, you might see their last known location, "No location found," or "Offline."

You can't play a sound to find them, but you might be able to get directions to the location where they were last connected. If they do come back online, you get a notification on the iPhone, iPad, iPod touch, or Mac that you use with them."

You can find more details here: Use the Find My app to locate a missing device or item - Apple Support

"Don't see your device?

You might not have Find My turned on. If your device is powered off, the battery has run out, or more than 24 hours has passed since its last location was sent to Apple, you can't see your device's location. Learn how you can still protect your information.

What happens if you activate Mark As Lost for your device

Mark as Lost remotely locks your missing iPhone, iPad, iPod touch, or Mac with a passcode, keeping your information secure even if your device goes missing. You can also display a custom message with your phone number on the Lock screen, and keep track of your device's location. Learn more about how to use Mark as Lost."

Activation Lock is only available for these devices: Activation Lock for iPhone, iPad, and iPod touch - Apple Support

"Find My includes Activation Lock—a feature that's designed to prevent anyone else from using your iPhone, iPad, or iPod touch, if it's ever lost or stolen. Activation Lock turns on automatically when you turn on Find My on your device.

Activation Lock helps you keep your device secure, even if it's in the wrong hands, and can improve your chances of recovering it. Even if you erase your device remotely, Activation Lock can continue to deter anyone from reactivating your device without your permission. All you need to do is keep Find My turned on, and remember your Apple ID and password. 

With watchOS 2 and later, you can use Activation Lock to protect your Apple Watch. And with macOS Catalina or later and Mac computers that have the Apple T2 Security Chip or Apple silicon you can use Activation Lock to protect your Mac, too."

Best regards.