Hi
Apple Watch continues to offer many features when the paired iPhone is not close by.
The full range of features is available when Apple Watch and iPhone are connected via Bluetooth. Whenever possible, the devices will connect via this method. Whenever your watch can't connect to the iPhone via Bluetooth, it will attempt, as a fallback, to connect to a known, compatible Wi-Fi network.
You don't necessarily need to have your iPhone on or immediately around you (within arm's reach, for example) for the devices to establish and maintain their Bluetooth connection. Normal Bluetooth range is around 33 feet / 10 meters (this will vary in practice due to wireless interference).
When instead connected to Wi-Fi, the watch also still offers a number of features. If it is unable to connect either via Bluetooth or Wi-Fi, it again still offers some - although fewer - features.
Features that remain available in either case are detailed here:
How to use your Apple Watch without your iPhone nearby - Apple Support
For the best performance from your iPhone and Apple Watch, including the most power-efficient communication between them, Apple recommends keeping both Bluetooth and Wi-Fi permanently enabled on your iPhone.
More information: