This answer explains the background history of the built-in feature in Android Studio. For the technology used and 3rd-party software, you can read my answer here.
As of 26 January 2022, the feature can be used on the stable version of Android Studio Bumblebee 2021.1.1 with Android 11+ devices. Though, the performance may still be buggy on some platforms.
While the revamped wireless debugging has been known since
- the source code commits in October 2019 by XDA
On the user-side, Google plans to add a new “wireless debugging” switch in Developer Options that supports pairing devices by scanning a QR code or entering a 6 digit code.
- the release of Android 11 DP2 in March 2020, as reported by 9 to 5 Google and Android Police
it was first introduced officially on Android 11: Developer Preview 3 in April 2020.
Wireless Debugging - In Android 11, we’ve completely revamped the debugging experience using ADB over a Wi-Fi connection. With limited USB ports on laptops, and a myriad of USB cables & connections to manage, the Wireless Debugging feature in Android 11 can help you be more productive. Unlike the existing TCP/IP debugging workflow, Wireless Debugging on Android 11 does not need a cable to set up, remembers connections over time, and can utilize the full speed of the latest Wi-Fi standards. In DP3, use the pairing code workflow to get started with this developer feature. We plan to add an integrated experience for Wireless Debugging with QR code scanning in a future Android Studio release, but we want to get your early feedback on the command line tool offered in Android 11 DP3. For details, see the documentation.
(Emphasis added, link fixed)
However, it was not until December 2020 that the new Android Studio Canary version, Android Studio Arctic Fox (2020.3.1) shown the pairing interface for the first time.
Lastly, for those running MacOS (other platforms are coming soon) with the latest Android Platform tools and an Android 11 device, you can try out the IDE integration for the Wireless ADB feature by going to the Run device selection dialogue → Pair Devices Using Wi-Fi.
Menu to access Wireless ADB feature
Wireless ADB Setup Window