How does digital sound volume control work in devices like phones and laptops?


I think I understand how analog potentiometers work but I am still confused about the digital equivalent of that system, like I imagine is used in most computing devices.

So, how does sound volume control system work in devices like laptops and smartphones? I read a few articles where they mentioned circuits but for some reason they all gloss over the details, as though they assume everyone understands how that system works. Can someone please explain that system to me like I am 5 years old and have never heard of it.

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This was an interesting, yet hard to get to the bones of, topic. This is the best I could come up with: