My understanding is that the two options currently available are to have the reference lap defined as the quickest lap on a given circuit, or it can be manually set by the user to be an arbitrary lap on that circuit.
I think it would be useful to have a third option, which would be that the reference lap is defined as the best lap on a given circuit on a given day.
A recent use case for this was a supersprint on a wet circuit. My reference lap on that circuit was much quicker from an earlier run when the track was dry.
Throughout the event my lap times improved, but it would have been great if the reference lap showed the best lap of that day so I could see the improvement (or not) for the current conditions.
In theory I could have picked the best lap from a given session after returning from the track, but it wouldn't be practical to manually update it after each lap while still on the track.