If there are any iOS devices with AirDrop enabled, they will automatically show up in the Share panel. You will see your contact pictures. You need to tap on the Contacts to send whatever want to share.
When you receive an AirDrop, you will get an alert with a preview of the photo or video, and with options to Accept or Decline it. If for example, you accept a photo via AirDrop, it will automatically launch the Photos app after the transfer is complete. It shows the progress with a circular animation during the transfer process.