Basically, for every block the pool finds (when you are actively mining) it will credit you some XMR proportional to your share of the pool's hashrate. For example, if your hashrate is 1 KH/s and the pool's hashrate is 100 KH/s (so 1/100th), they will credit you 1% of the coinbase transaction (i.e. the block reward + fees). I am saying approximately because pools can use PPS (Pay-Per-Share), PPLNS (Pay-Per-Last-N-Shares), or something else, which can result in the hypothetical 1% being somewhat off. In addition, to clarify, this is done off-chain. Then, once you reach a certain treshold (at the time of writing it's typically 0.5 XMR), the pool will pay you out (on-chain). That is, they will send the 0.5 XMR to the wallet address that you specified in your config.
A bit more on PPS and PPLNS from here:
However, note that interruptions affect how much you will win in the first place. There are 2 different pool policies PPS (pay per share) and PPLNS (pay per last N shares). With PPS, you will always win a piece of block reward proportional to your shares submitted to the pool / total shares submitted to the pool. With PPLNS it's a bit different, to discourage pool hopping.