Seems normal to me. Out Of Range basically means the leads are not connected to anything while in a Resistance or Diode check mode.
If you touch the leads together in the Diode Test/Drop mode you should see the value drop almost to Zero and if you have the sound turned on you will hear a beep, beep, beep from the phone/tablet because this I assume is acting as a continuity tester at this point as well.
Not sure I like the intermittent beeping, no meter I have ever used before had an intermittent beeping. Might be useful to have a user definable continuity beep that is either solid or broken.