Does Apple Watch Auto Unlock need network access and Two-factor authentication?
Does Apple Watch auto unlock need network and two-factor authentication?


To use Apple Watch Auto Unlock feature, you need to have Wi-Fi and Bluetooth turned on both your Apple Watch and Mac. It is similar to AirDrop, the radios must be turned on for the feature to work.

Also, your account must have Two-factor authentication turned on. Having Two-factor authentication enabled provides an extra layer of protection and doesn't compromise your Apple ID in any way.


  My password is very secure and I don't want to enable this feature.


It doesn't matter howsoever strong password you use, once someone else gets hold of it (which could happen accidentally), they have complete access to your Apple ID account. Two-factor authentication adds an extra layer of security by having the user to obtain and enter an additional, randomly generated code.

Two-factor authentication is more advanced than two-setp verification. Apple highly recommends protecting your account with Two-factor authentication, so much so that if you use it at-least for a couple weeks, you couldn't turn it off.

For more details refer to the linked Apple Support articles:


How to unlock your Mac with your Apple Watch
System requirements for Continuity on Mac, iPhone, iPad, iPod touch, and Apple Watch
Availability of two-factor authentication for Apple ID
Switch from two-step verification to two-factor authentication