I believe there are ways to passively determine a sub's depth in real life. I know for sure you can do it with active. It's not really necessary in this game because even if you have an Akula that goes to, what, almost 600 m deep? In terms of the ranges you encounter in Dangerous Waters, say around 10000 m for this example, 600 m is basically nothing. It's something the torpedo will have no trouble sorting out if it's enabled at the proper time.
In the game, you can for sure determine if a contact is above or below the layer, assuming they're far enough away. Within a certain very close range of ownship, you can't easily tell if a contact is above or below the layer.
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