I have a holster that has the magnet to put my BB to sleep, but I haven't changed the options for when the BB is in it. Will it still "sleep" if I still have it ringing and vibrating when it is in there? I use the holster for just something to put my BB in while it is in my bag. It's better than it just bouncing around in there.
Do I need to change anything, or will it still save battery life by just being in there?
Yes it will save battery life by simply being in the holder without
you changing any settings. Once the magnet contacts the
proximity sensor it will throw the device into standy, sort of like
pressing the mute key does. The other benefit is that you can't
make accidental presses while it is in this state.