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The Bluetooth button located in the upper-left corner of the control center. If you click and turn white, you will see a message saying, "I will cancel the connection to the Bluetooth device until tomorrow." this is because Bluetooth is off, so save power. I'm about to come to a conclusion.
The Bluetooth button is only used to disconnect, not to turn off the Bluetooth communication function itself. The switch to turn Bluetooth on / off is located on the Settings Bluetooth screen, and some features of Bluetooth will continue to work unless you turn it off.
Some of the functions of Bluetooth that continue to work refer to Bluetooth LE-based functions, such as AirDrop, AirPlay, HandOff, and AirTag (location Services). The Bluetooth LE has very low power consumption, and even if it is always on, it has little effect on the battery of the iPhone. On the contrary, it has more disadvantages when it is turned off. Therefore, there is no need to actively turn off the switch on the Settings Bluetooth screen.
On the other hand, if the Bluetooth button is turned off, the function of using Bluetooth other than the above will stop. Disconnect communication with Bluetooth accessories such as wireless headsets and keyboards and stop transmitting notifications to the smartwatch.
Communication with Bluetooth accessories (usually Bluetooth 2.x) is not as low-power as the Bluetooth LE, but if you keep playing music on a wireless headset or typing for a long time on a wireless keyboard, forget it, it consumes less power than the Wi-Fi. If the attention is turned on only when necessary, although you can expect a slight power-saving effect, you don't always pay attention to the benefits of status.