How Does Run time data (Parameterization) is handled in QTP?

How Does Run time data (Parameterization) is handled in QTP?

You can then enter test data into the Data Table, an integrated
spreadsheet with the full functionality of Excel, to manipulate data
sets and create multiple test iterations, without programming, to
expand test case coverage. Data can be typed in or imported from
databases, spreadsheets, or text files.