how does time capsule work?

i mean, i backed my stuff up. but the files on the time capsule aren't really accessible. it's like one file that i guess is my backup.
so, does it make it into a file kindof like a zip to store memory or something?
the reason i'm concerned is that I have everything backed up. like that.
"backup"
and they're replacing my harddrive today.
so i'm relying on this "back up" to save everything.
these files are non-replaceable.

so, can someone explain this to me?

i mean, it makes sense to me kindof. just making sure it's all going to work out.

i've had an external harddrive, and it saves files as if it was just on another harddrive. where i can go in and access them all.
time capsule/machine backups is just a "backup file"
or whatever.

explain? please

should be all good then.
the time capsule backed itself up automatically every time i turned my mac on. so, that should be ok.

would just be disaster if the files were lost.