Default formation have all settings the other formations have, except the ID, and the conditional ones, as the default is always visible, is always active, and have no members count restriction.
Within, you can position them on similar way as in FF IV, and even give atk+ for front line positions, and def+ atk- for backline. But there is no way to switch rows in battle, as you can do in FF IV. Or make it party be with reversed rows when caught unprepared. Other big minus, backline members would keep their def+, even if all front line members are KO. I didn't set conditions for stat bonuses. About changing formation in battle, I had attempt, but didn't like the result, and for now, no time to improve it.