Hi @Abhay Gupta
Welcome to Microsoft Q&A! Thanks for posting the question.
The functions scale document covers different scaling as per your hosting plan. If you create a function on the existing app service plan then the azure function will use the app service plan allocated resources to serve the request. If you are using Dedicated Plan then you can manual/autoscale scale-out as mentioned in the document. For consumption/premium plan it is an event-driven scale-out.
You should set autoscale on your app service plan based on different available metrics as per your requirement.