Operating an autonomous underwater vehicle (AUV) in close proximity to terrain typically relies solely on the vehicle sensors for terrain detection, and challenges the manoeuvrability of energy efficient flight‐style AUVs. This paper gives new results on altitude tracking limits of such vehicles by using the fully understood environment of a lake to perform repeated experiments while varying the altitude demand, obstacle detection and actuator use of a hover‐capable flight‐style AUV. The results are analysed for mission success, vehicle risk and repeatability, demonstrating the terrain following capabilities of the overactuated AUV over a range of altitude tracking strategies and how these measures better inform vehicle operators. A major conclusion is that the effects of range limits, bias and false detections of the sensors used for altitude tracking must be fully accounted for to enable mission success. Furthermore it was found that switching between hover‐ and flight‐style actuations based on speed, whilst varying the operation speed, has advantages for performance improvement over combining hover‐ and flight‐style actuators at high speeds.