Normally, things thats not in your View should be a low quality LOD, and things you see are high quality.
In Arma its the opposite, see my video: Things you look at become low quality, and things outside your view are high quality. **Also the change from low to high causes heavy fps drops for the duration it takes to transition.**
https://www.youtube.com/watch?v=3rikUOL6LgI