The state property is updated in a React component with the object passed into setState, and this is done asynchronously.
It tells React that this component and its children need to be re-rendered, but React may not do this immediately (it may batch these state update requests for better performance).
The first thing React will do when setState is called is merge the object you passed into setState into the current state of the component. This will kick off a process called reconciliation. The end goal of reconciliation is to, in the most efficient way possible, update the UI based on this new state.
To do this, React will construct a new tree of React elements (which you can think of as an object representation of your UI). Once it has this tree, in order to figure out how the UI should change in response to the new state, React will diff this new tree against the previous element tree.
By doing this, React will then know the exact changes which occurred, and by knowing exactly what changes occurred, will able to minimize its footprint on the UI by only making updates where absolutely necessary.