David Micklewhyte‘s answer is a good one. There are essentially a few types of features that different autopilots have. Some autopilots only have some of these features, while the more powerful autopilots do it all.
The autopilot is a powerful computer that takes input from either the pilot or a navigation device and essentially does what it is told to do. GPS navigators, for example, can have a full flight plan entered from departure to destination, and the autopilot will follow the navigator’s guidance.
These are the majority of the controls on the autopilot installed in my airplane:
HDG Knob = Heading knob (Used to set the desired heading)
AP = Autopilot (Pressing this turns the autopilot on)
FD = Flight Director (A form of navigational display that the pilot uses)
HDG = Heading (Tells the autopilot to fly the heading set by the Heading Knob)
NAV = Tells the autopilot to follow the input from the selected navigator
APR = Tells the autopilot to fly the chosen approach
ALT = Tells the autopilot to manage the altitude, controlled by the following:
VS = Vertical Speed (Tells the autopilot to climb or descend at the chosen rate)
Nose UP / Nose DN = Sets the climb/descent rate in feet per minute
FLC = Flight Level Change (An easy manual way to set the autopilot)
ALT Knob = Used to enter the desired altitude
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