A digital-imaging based code symbol reading system having a hands-on mode operation and a hands-free presentation mode of operation, and supporting automatic programming of system parameters for automatic configuration of the system in hands-on and hands-free modes of operation. The system comprises: an image formation and detection subsystem; an illumination subsystem; a digital image processing subsystem; a system control subsystem for managing system parameters, and controlling and/or coordinating operations of the system; and a configuration detection mechanism. The image formation and detection subsystem has the area-type image sensing array for detecting digital images of objects formed thereon by image formation optics providing a field of view (FOV) for the system. Within the FOV of the image formation and detection subsystem, the illumination subsystem produces a field of illumination that illuminates the object during the image capture mode of operation, and one or more digital images thereof are detected by an area-type image sensing array. When the hand-supportable housing is picked up from on a countertop surface or support stand and held in an operator's hand, the system parameters are automatically programmed so that the digital-imaging code symbol reading system is automatically configured into its hands-on mode of operation. When the hand-supportable is resting on the countertop surface or in the support stand, the system parameters are automatically programmed so that the digital-imaging code symbol reading system is automatically configured into its hands-free presentation mode of operation.