See also also bike pic for other bike-related technical discussions and failed parts.
Summary:
The brake starts at low leverage. When the pads touch the rim and cable tension goes up, it switches to high leverage.
Low leverage means the pads can be far from the rim, so there is no rubbing when the brake is off.
High leverage makes it possible to:
The leverage switch is based on force and not on position, so the brake does not need to be adjusted as the pads wear.
Documents: