So if i set my atv to 4k sdr with range matching on, will the atv or my tv itself will upscale 1080 show to 4k? And who will convert a hdr shows to hdr?
The Apple TV will upscale your content to 4K and send the TV a 4K signal, but it will auto match for SDR, HDR, or DV. If the encoding for HDR or DV is offered, it will be passed through to the TV to present in the supported format. It's the TV that does the actual implementation of HDR, the Apple TV just tells the TV that it's sending an HDR signal. This is why setting the default output to HDR is bad, because the ATV tells the TV that everything is HDR, and the TV applies its HDR settings to content that isn't mastered for it.