I received a call from Lenovo tech support, presumably in response to this. I don't want to spend hours on the phone with Lenovo tech support while they try to convince me that I've done something wrong and try to get me to return my tablet. This is either a bug in Android or it's a bug in Lenovo's implementation of Android.
STEPS TO REPRODUCE:
1. Start with a Lenovo Yoga Smart Tab that has no SD card installed. Turn the unit off.
2. Install an SD card of any size (I used a SanDisk 64GB Class 10 "Extreme microSDXC UHS-I Memory Card with Adapter"; this is its name on Amazon; it appears to really be UHS-3)
3. Turn the unit on and log in. You will receive a notification that you need to set up the SD card. Select the notification.
4. The SD card setup consists of one choice: "Tablet" mode vs. "Portable Storage" mode. Select "Tablet" mode (also known as "Internal" mode). The setup program will then tell you that it is copying data to the card, after which it will say that setup is complete.
5. After awhile restart the tablet and wait for a minute or two at the login screen without logging in. You will eventually see an incorrect notification telling you that the SD card cannot be found.
6. Log in and verify that the SD card is indeed working by going to Settings -> Storage, where it shows TWO storage items: "Internal shared storage" and "SanDisk SD card". It even shows how much of the SD card is used.