Most observed displays by grey reef sharks have been in response to a diver (or submersible) approaching and following it from a few meters behind and above. They also perform the display towards moray eels, and in one instance towards a much larger great hammerhead (which subsequently withdrew). However, they have never been seen performing threat displays towards each other. This suggests the display is primarily a response to potential threats (i.e. predators) rather than competitors. As grey reef sharks are not territorial, they are speculated to be defending a critical volume of "personal space" around themselves. Compared to sharks from French Polynesia or Micronesia, grey reef sharks from the Indian Ocean and western Pacific are not as aggressive and less given to displaying.
Generally a coastal, shallow-water species, grey reef sharks are mostly found in depths of less than 60 m (200 ft). However, they have been known to dive to 1,000 m (3,300 ft). They are found over continental and insular shelves, preferring the leeward (away from the direction of the current) sides of coral reefs with clear water and rugged topography. They are frequently found near the drop-offs at the outer edges of the reef, particularly near reef channels with strong currents, and less commonly within lagoons. On occasion, this shark may venture several kilometers out into the open ocean.
These biotic reef types take on additional names depending upon how the reef lies in relation to the land, if any. Reef types include fringing reef, barrier reefs, as well as atolls. A fringing reef is a reef that is attached to an island. A barrier reef forms a calcareous barrier around an island resulting in a lagoon between the shore and the reef. An atoll is a ring reef with no land present. The reef front (ocean side) is a high energy locale whereas the internal lagoon will be at a lower energy with fine grained sediments.