I've updated my app and due to some of the functions I'm releasing it has to be for iOS 10 and up. I understand that there is a way for users that have not upgraded to iOS 10 to be able to get the older version of my app but I haven't been able to figure out how to enable that in the app store. I just tested on a device and currently if you have iOS 9 it will tell you that you can't get the app because it is only supported on iOS 10. No option to download the previous version.
According to the redit article below Apple enabled the behavior I want. I just don't know how to turn it on for my app.
https://www.reddit.com/r/apple/comments/1mjw36/people_with_old_ios_devices_you_can_now_install/
Best Answer
The feature has been around for a number of years. It's enabled for every app by default and an opt-out for developers per app version. You can remove an older app version from download through iTunes Connect → My Apps → app → App Store → Pricing & Availability → Last-Compatible Version Settings → Available Versions.
The key information as to why you are seeing the feature not working is mentioned in this page:
iTunes Connect Last-Compatible Version Settings, emphasis mine
Downloading a previous version of an app requires the app be downloaded from iTunes in the Cloud, i.e. the app must be in the user's purchase history. This means it does not apply to new downloads, but rather re-downloads.
For a user to download an app which requires a later version of iOS, they must first either:
This adds the app to the user's purchase history and is now eligible for last-compatible version download through the feature popup as you mention.
sample: