The spec is not so well written.... it should note the MINIMUM internal voltage drop, which is noted to be 3V max 🙂
Since you apply a (more or less) constant voltage, and you want a controlled current in your load resistor, the device will act like a variable resistor, always set to a value such that the set current is flowing.
So your setup with a 10 V source and a 250 Ohm load will not harm the device and should run, 250 Ohm and 20mA will give you 5V , plus the 3V the current regulator needs results in about 2V left for regulation.
Greetings from Germany
Henrik
LV since v3.1
“ground” is a convenient fantasy
'˙˙˙˙uıɐƃɐ lɐıp puɐ °06 ǝuoɥd ɹnoʎ uɹnʇ ǝsɐǝld 'ʎɹɐuıƃɐɯı sı pǝlɐıp ǝʌɐɥ noʎ ɹǝqɯnu ǝɥʇ'