In Manual Mode, the GPS is on, but is not being used by the flight controller so it does record home point and and all movement during flight. When you go in and turn 'Off' the GPS, then of course it is off and does not know home position or log the flight coordinates.
In Flight however, from the pilot's perspective, the aircraft responds to the controls in the same manner and that is to say that; the aircraft will keep itself righted but it does not hold position, nor does it brake once moving and controls are returned to neutral. If you have never flown 'manually' I would suggest you pick a calm day and don't get too high or go too fast until you can master the control.