Non Production automatic password resets how do they work?

Summary:

Currently we manually set the passwords for users in non production (HCM) environments, there is an option of automatic password reset, but how does this work?

Content (required):

Currently we manually set the passwords for users in non production(HCM)environments, there is an option of automatic password reset, but how does this work?

Do other customers use the automatic password reset?

Version (include the version you're using, if applicable):

Code Snippet (add any code snippets that support your topic, if applicable):