Autoaiming is enabled by default and can be disabled or tweaked on the PlayerStateAiming component attached to the Character prefab
AutoAimingRange: Determines how far the character will detect targets to aim at
AutoAimingDuration: Determines how long the player will take to rotate towards the target
AutoAimingMask: Determines in which physic layer Aimable targets will be located
In order for an object to be considered by the autoaim system it needs to have an Aimable component attached to it, a collider and the layer has to be one of those selected in AutoAimingMask (explained above). To make things simpler, you can simply add the Aimable component to objects that already contain a working Damageable.
The character can attack up/down as far as the animation supports. Some values can be tweaked on PlayerStateAiming.
AimVerticalInputThreshold: Indicates how far the player needs to be pushing the stick for verticality to start working