How does pruning work?

I have a node that runs with default pruning strategy (tendermint v0.33.7 and osmos-sdk v0.39.1)
from the app.toml comment -
# default: the last 100 states are kept in addition to every 500th state; pruning at 10 block intervals

But I’m not sure I understand exactly what does it mean by state.
I thought it might be removing the raw blocks but it seem like I can query the node for all old blocks and get them

So which data my node is removing when using pruning? and is it correct that all the raw block data is still kept ?