The conversion involves creating a copy of the whole ext2/3/4 metadata, while the Btrfs files simply point to the same blocks used by the ext2/3/4 files. This makes the bulk of the blocks shared between the two filesystems before the conversion becomes permanent. Thanks to the copy-on-write nature of Btrfs, the original versions of the file data blocks are preserved during all file modifications. Until the conversion becomes permanent, only the blocks that were marked as free in ext2/3/4 are used to hold new Btrfs modifications, meaning that the conversion can be undone at any time (although doing so will erase any changes made after the conversion to Btrfs).
