The best strategy for playing a 16 against a dealer's 10 is to surrender, if allowed. This is the most optimal play because the dealer’s 10 is a strong card, and your chances of winning with a 16 are quite low. By surrendering, you only lose half of your bet, avoiding the risk of losing the entire amount. If surrender is not an option, the next best move is to hit. Standing on a 16 against a dealer's 10 leaves you with a weak hand, and the dealer is likely to have a stronger total. Hitting gives you a chance to improve your hand, despite the risk of busting. While hitting increases the chance of going over 21, it's still the better option compared to standing, as the dealer is likely to win with a hand higher than 16.