This has happened to me twice, the first time was at the beach and a lady asked if she could take pixie to show her friend who was standing a few yards away with a Staffordshire bull terrier on a leash (nothing against Staffies btw because we have a gorgeous one ourselves!) she had her arms out ready to just have her off me! I said no of course and she looked rather put out! The second time i was caught off guard, an older lady approached me 'ooohhhhing and ahhhhhing' (typical reaction from strangers when owning small cute yorkie lol) and she stopped to talk to me, asking q's about Pixie, she bent down to pet her and before i could do anything she had her hand under her little body and had lifted her up!

well,...I was having kittens of course and became really nervous, she must have sensed this and said, 'Oh, I'm used to small dogs'! Now, when anyone looking remotely interested in her is approaching, I pick her up before they do!