See this illustration:

What I would like to know is:
What you basically need, is the distance between two points on the map:
float[] results = new float[1];
Location.distanceBetween(centerLatitude, centerLongitude, testLatitude, testLongitude, results);
float distanceInMeters = results[0];
boolean isWithin10km = distanceInMeters < 10000;
If you have already Location objects:
Location center;
Location test;
float distanceInMeters = center.distanceTo(test);
boolean isWithin10km = distanceInMeters < 10000;
Here is the interesting part of the API used: https://developer.android.com/reference/android/location/Location.html