It’s blind. When a player is dropped, they’re on waivers for a full 2 days, although your league looks to be set up for just 1 full day. When the draft is submitted, all undrafted players are placed on waivers for a full 2 days, 1 day by your league settings. In season, when a free agents game starts, he is placed on waivers for a full 2 days, 1 day in your league. The waiver priority begins after the draft with the team that selected last having the highest priority and the team that selected 1st having the lowest priority.
You need to be careful using your waiver claims however. If you know a lot of your leagues teams will be going after a player on waivers and you want him, you need to put a claim on him. If it’s someone flying under the radar and you think you’re the only one that wants him, wait for him to clear waivers and pick him up when he’s listed as a free agent. When you get someone off waivers, you then go to the back of the line in your league as far as waiver priority.
Hope this helps.