If the watch has no GPS capability, and matching Todd’s thoughts:
It can only measure air pressure. It doesn’t/can’t know if you’ve gone up the mountain or if a low pressure system has moved in. If you provide it with one more datum (elevation or current sea-level equivalent atmospheric pressure for your location), it can provide the other: current atmospheric pressure, or your elevation, respectively.
It sounds like the auto mode looks at the rate of change and maybe the number of reversals per day and tries to discern your movement apart from changes in the weather. If you sleep overnight in one spot, air pressure will change slowly and it will attribute it all to weather changes. If you are hiking during the day, going up and down and up and down, it will attribute lower or higher air pressure to your being higher or lower on the mountain, respectively.
A mnemonic that works for me: if you “gained altitude” overnight for free (i.e. the atmospheric pressure dropped while you slept), you “got up the mountain” without working. You cheated. Cheating is bad. Bad weather is ahead (because the air pressure is failing).
A mnemonic for “mnemonic”: Memory Needs Every Means Of Naming It Correctly
If you know your altitude (maps, trail profile, benchmarks, elevations at a pass or trailhead), you can enter that and have an accurate atmospheric pressure for predicting the weather.
If you know you didn’t move (e.g. overnight) but the altimeter shows you went up or down, then the atmospheric pressure decreased or increased, respectively.
If you can get a weather/pilot report that gives a corrected (to sea level) air pressure and enter that, then the Suunto can give you accurate elevations. Also, if at a known elevation, you recalibrated the unit, it will be accurate for several/many hours afterwards.