GoKawiilApple explains differences between AirPods Noise Cancellation and Adaptive Audio
Apple's AirPods offer standard Active Noise Cancellation, which uses microphones to generate anti-noise that blocks steady ambient sound, and Transparency mode, which blends outside sound back in. Adaptive Audio offers a middle setting that filters most background noise while letting important sounds like horns or voices through, and includes an optional Conversation Awareness feature that lowers media volume automatically when the wearer starts speaking.