By default it takes your current target and just prompts for a comment. I've frequently added myself to my own KoS list when trying to add somebody following some chat abuse or similarIt appears I have to manually type in the name of someone I want to add to my KoS list,
I'm not aware of being able to configure it to warn you about random enemies in the area, but I knew somebody who used to swear by paranoia (links to Curse).
I can't vouch for that myself though.
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