I don't know technically how it does it, but it's basically what's the upshift lever on shimano and campag, if you push it a bit then release it it releases tension (changes to smaller cog), if you push it further, then it increases tension, and shifts to a bigger cog.
You might well say "when you're downshifting, why doesn't it upshift first!?" - the answer is it just doesn't! i can only assume it must be the release which actually does the changing but it's lightning fast anyhow. I think it might be the release rather than the press which does the shift on shimano and campag anyway.