When a view drawing is dragged onto a sheet to create a sheet view, the model space settings (the viewport scale, layer settings, and display configuration) of the view drawing are used in the sheet view.
When generating a model space view or a new view drawing from a callout tool, you define the drawing scale to be used. This scale is also used in any sheet views generated from the view.
Layer changes (including xref dependent layer changes) from the view drawing can be displayed and updated in the sheet view, if the project has been set up to synchronize sheets with views.
If a project has been set up to synchronize view drawing layers with sheet view layers, viewport layer overrides in sheet views will be overwritten by the layer configuration of the view drawing when the external references are loaded or reloaded. If not, layers and xrefed layers in the sheet view will behave as normal.
The drawing containing the sheet opens in the drawing area. The sheet you selected is the active layout.