Your computer/laptop USB ports can supply 500mA 5V output. Many products use that to power themselves.
A USB cable has 4 wires. (+5V), GND( Ground or -), DATA+,DATA-
if you connect a device that only uses 5V and GND, it will not appear in any device list. However when you connect a thumb drive, since it uses DATA+ and DATA- as well, it appears in devices that are connected and if the OS has drivers for it, it will recognize it as a USB drive.
In the case of the FiiO, it doesn't use the USB port as audio in but just to power itself and to eliminate the need of a charger or power brick. Therefore only using 5V and GND and none of the DATA wires.