if it's not HDR video (the menus are also not natively HDR), the appleTV has to convert and make "false" HDR, and the results to most people are less than pleasing. "Washed out" comes up frequently when people talk about it on here.
you want to make sure range and frame rate matching is on, that way video playback always matches the file being played.
rate matching can make your playback smoother, if your video is 24 Frames/sec but you're playing back at 30 F/s then it has to fill those 6 extra frames with something, so some frames get "played" twice. Your eye will see this, especially on long duration panning shots, as the double frame will look like a pause for just a fraction of a second. The term for this is "judder." If you're interested, there are tons of articles about this online, just search "judder" or "video pulldown."
This wiki link is informative.
you can choose to leave the main setting in HDR or SDR mode. Play around and see what you like. This will only affect the menus now. I leave mine in SDR.