"I thought that most drones capable of flying that range would have a programmable altitude ceiling, or require you to specify one as part of the set up process. "
My 250 racing quad has a range of over a mile (supposedly according to the instructions, never flown it out of line of sight). No fancy GPS, altimeter etc either on it either - just the essentials to give it raw power and transmit the signal from the FPV camera.