I suspect this feature doesn’t work as it should with transposing instruments.
Let’s take a simple example :
say I would like to limit the range of an instrument such as Double Bass between C3 and C4. So in the Score Settings for the staff I select Double Bass in Display Transpose in the Main tab, and I set the Low limit to C3 and the high limit to C4 in Options tab.
In this case the limits between which I can enter the notes in the staff are correctly transposed to C4-C5. BUT, this is not the case for the displayed range. This is to say, the limits beyond which the notes are hidden or colored remain between C3 and C4, while this range should also be transposed +12 semitones (C4-C5).
Is this a sort of bug ?
I think I agree with you 
(it shouldn’t be necessary to modify the display note limits). However, being pedantic about what Steinberg considers a bug, this is more of an Improvement Request, inasmuch as it has not been designed to handle this automatically (so nothing is actually “broken” )
Thanks for your reply Vic.
I hesitated to use the word bug, that’s probably not really the case indeed. Maybe I could call it a design error.
But this is not about doing it manually or automatically.
Actually it’s impossible to match the note placement limits AND the note display range in the staff for a transposing instrument.
Nothing is broken, sure, but it seems that there is no way to make this feature work in this case.
Do you have any suggestion ?
So I still don’t know if Steinberg should consider it as a bug or not. 
Well, I only did a very quick test, but I simply re-entered lo and hi note limits in the Staff Settings dialog (transposing them both one octave higher), and it seemed to work fine here (maybe I didn’t look closely enough?)… I should add that I only did the note-limit transposition after entering the actual notes.
So yes, I see what you mean… we do have to “workaround”, in order to get where we want .
First of all, a big thanks to you Vic for been such a valuable member on these forums, always there helping.
Thank you for taking the time, once again, to have a look on this problem.
In a nutshell, the problem is the notes falsely colored as if they were out of the range of the instrument that are actually within its range.
So the only workaround would be to set the color for hidden/beyond limits notes to black or inactive in Preferences.
But this way we loose the color for hidden and out of range notes for the entire score of course. 
I think I’ll still report this behavior as a bug in the issues section.
Does it not work for you if you only set lo and hi limits after entering the notes (with display transpose on for that)… that at least will allow you to enter the desired notes without worrying about range, then go ahead and set lo and high, but transposed up one octave?
The problem is that I precisely want to worry about range.
I don’t use Score Editor as “editor” after recording the notes. I enter the notes by mouse, and this feature is useful. But it displays incorrect information for all transposing instruments : French horn, clarinet, trumpet, (contrabass) etc …
This is not a big issue of course, but it’s just annoying. Because the transposed limits for entering the notes are correct and the only problem is that many notes are incorrectly colored as beyond limits.
I guessed you were going to say that! 
So you just wanted to provoke me!
I’m starting to know you. 