The Preview On <device name> option is unavailable in the Folio Builder and Folio Overlay panels in InDesign. The Adobe Content Viewer is launched and in the forefront of an iPad connected to a computer with InDesign running.
Install the March 26 2013 update for your version of InDesign, then create your own Adobe Content Viewer for iOS.
The option for creating a custom Adobe Content Viewer isn't available for customers who don't have the DPS Professional or Enterprise versions. Adobe has submitted an update for the Adobe Content Viewer in the Apple App store. We will update this document, the DPS user forum, and the DPS status page when that is approved.