Jack Niklaus famously said, 'whenever you get an opportunity to tee up the ball, do so!'
There is an advantage to striking a ball off a tee without the pesky interference of the grass/ground we are playing on. Unfortunately, we can only do so in the tee box. You are allowed two club lengths any where in the tee box and only the ball needs to be inside, thus you can benefit from angles and leveling the lie.
If you play with different people you will soon notice everyone seems to tee up their driver, woods and irons differently. Why? Sometimes through incorrect understanding of ball placement in the golf stance, (that's another blog all together), or even not completely understanding the bottom of the golf arc in a swing to name two.
So very simply following are some suggestions.
Tee it up low: Top of the ball even with the top of the club for hitting hybrids, a fairway wood or into a strong wind, to lower the launch angle and maximize flight and roll out. Of course this will be for irons as well.
Tee it up in the middle: Half of the ball above the top of the club, for fairway woods in normal conditions to minimize spin, and maximize overall distance.
Tee it up high: I hardly ever recommend this one, with the bottom of the ball even with the top of the club, as you are more likely to sky the ball and scuff the top of your club! It can produce a very high launch angle for having the drive land softer with minimal roll out.
The best thing for everyone to do is experiment to determine what works best for them. Don't watch a Tour Pro and think they hit it well therefore must be correct for you.
Remember they likely have a higher club head speed than you and are probably moving through the ball a tad, just a tad, differently!