Where should gasket sit on new drain installation?

When installing a new bathtub drain, would the gasket that comes with the new drain be placed between the drain and the tub, so that the rim of the gasket in slightly visible around the edges?

Some DIY videos online say this gasket even removes the need for any type of sealant or putty.

I'm reading online that this is not correct, but it's how our master bathroom tub drain was installed some ten years ago. We've not had any problems, aside from a small bit of water that sits around the drain due to the added height from the gasket.