Digital Potentiometer – How it works
The Digital potentiometer is a device that uses digital communication to set its resistance instead of a physical rotationg part. This module is based on MCP4018 integrated chip by Microchip which has a total of 128 steps between 0 and max ressitance values.

Datasheet
For an in-depth look at technical specifications, refer to the official MCP4018 Datasheet:
MCP4018 Datasheet
Detailed technical documentation for the MCP4018 digital potentiometer
How the digipot works
Unlike their analog counterparts, digital potentiometers utilize electronic signals to alter resistance levels precisely. Within it is a network of resistive elements and switches, resistive elements are devided into sections that are controlled by its corresponding switch. By togglin these switches on or off, the effective resistance between the terminals can be changed.