See this illustration:
What I would like to know is:
I would prefer if you can give me code example in Java or specifically for Android with Google Maps API V2
What you basically need, is the distance between two points on the map:
float[] results = new float[1];
Location.distanceBetween(centerLatitude, centerLongitude, testLatitude, testLongitude, results);
float distanceInMeters = results[0];
boolean isWithin10km = distanceInMeters < 10000;
If you have already Location
objects:
Location center;
Location test;
float distanceInMeters = center.distanceTo(test);
boolean isWithin10km = distanceInMeters < 10000;
Here is the interesting part of the API used: https://developer.android.com/reference/android/location/Location.html