Drag within Scene is dereferenced from a SceneModel. It allows you to specify a end position and rotation where the user can drag it to, from its original position. The position to drop the model will be highlighted.
To set the end position using the gizmos, click on the node and simulate to it. Now you can drag the object to a new position in editor tab.
You can use the Reset Position and Reset Rotation buttons to set the model back to its original position.