Hi @Manasi29 -
When you submit a dialog, the properties entered into the dialog will be saved to that particular component using a POST call to the specific component path on the page. You can observe this in the Network tab of your browser Dev tools.

Additionally, all clientlibs that have been marked with the category 'cq.authoring.dialog' and the custom clientlibs included as 'extraClientLibs' on your dialog get executed.