Update an app in googleplaystore

I have a doubt regarding updating the app. I had used in app update component . After i publish the app in google playstore , and in the near future ,i will update the app .
So i enter the new version code and name for eg : 1.1in the version code in screen 1

Now, How do the google play console comes to know abt the update .
Secondly , i used in app update component , the app will automatically update right as shown below right ?

Thanking U in advance

This is not a PM, please don’t tag users for attention.