In 7v7 football at the U10 age level, the offside rule does not apply. The game is designed to encourage freedom of movement and continuous play, meaning you do not need to coach your players to hold a high line or track runs based on offside positions. The FA guidance for youth football formats from 5v5 through to 7v7 specifically removes offside to simplify the environment and focus on individual skill development, ball mastery, and basic game understanding rather than administrative technicalities. Because this is a standard format for U10, you should proceed with the understanding that there is no offside law to enforce or observe during matches. You can find official guidance on these youth formats through the FA's resources, which clearly distinguish the rules between mini-soccer, youth development formats, and the full-sided game.
Since offside is out of the equation, your focus should move toward helping players recognize space and distance relative to the ball, rather than imaginary lines. The biggest trap coaches fall into is teaching players to 'mark the space' or 'stay behind the attacker' as if an offside line existed. Instead, I teach them to manage proximity to the ball. When defending, the priority is that the first defender engages the ball-carrier, while teammates find a balance between being near enough to help if the first player is beaten, and far enough away to cover the next pass. If you coach them to chase the ball regardless of where an opponent is standing, you will find they naturally develop a better sense of recovery and compactness without needing to worry about a whistle for offside.
To help them understand where to be, use a simple 'ball-side' reference. I often set up a practice where the pitch is divided into two halves horizontally. If the ball is on the right, I ask my players to scan to see if they are on the ball-side or the weak-side. This is far more beneficial than teaching them to stand in a line. In a 7v7 game, the pitch is small enough that players can influence the play from almost anywhere if they are active. Use a game with 'gates' at both ends to reward players who transition from attack to defense quickly. If a team loses possession, can they immediately put pressure on the ball? If they don't have to worry about offside, they are free to chase, disrupt, and win the ball back in high areas, which is the perfect foundation for aggressive, team-oriented defending.
On matchday, watch how your defenders react when the ball is played over their heads. Instead of looking for an offside flag, watch to see if they turn and sprint toward their own goal to recover. This is the habit you want to build. Are they tracking the runner or just ball-watching? If they stand still expecting an official to call offside, they will be left behind. Encourage them to be responsible for the space behind them by always scanning and adjusting their distance. This approach develops a much more proactive defensive mindset than relying on a rule that simply does not exist in their current format.