Amazon VPC is a virtualized network, also known as a software-defined network.
Behind-the-scenes, VPC traffic is encapsulated and transferred across 'normal' network equipment, but the VPC defines a simplified set of rules that allow a network to be provisioned through clicks and API calls rather than connecting and configuring equipment.
The simple answer to your questions is... It doesn't matter.
As long as the network behaves correctly for how it has been configured, the implementation details are irrelevant.
If you are interested in learning how networks in general operate, then I would recommend learning about Ethernet, TCP/IP and network routers. A VPC is higher-layer implementation of these technologies.
To learn a little bit about how VPCs operate, I would recommend watching these YouTube videos: