If the WiFi connection is lost, the aircraft will continue on with the flight as it has been programmed. You will not receive updates and the Standard has no Return to Home button so it will likely be a pretty scary situation while this occurs. Since it is the app that does the triggering of the camera the aircraft will be flying along doing nothing.
The Standard is usually pretty good for close flights which is why draw a guide circle at 500 m to provide a reference. Maintaining line of site and a solid connection is important for both safety and data integrity.
The "new connection" stuff in the latest update has more to do with the update DJI SDK and does not refer to a connection-less operation mode.