How Does New TV Handles ARC?

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Now that we have HDMI 2.1 and eARC, how does the handshake works for old receivers with only legacy ARC? My new TV replacing my good old short throw projector is coming this Saturday and I totally got no clue on how they will interact. To make matter worse, the recent cable that I pull was a 20m HDMI 2.0b optical cable.

It might come down to buying a new eARC receiver and a fresh set of HDMI 2.1 optical cable. Does these long distance optical cable even handle eARC properly?