Uhh, let's see...
After a search, it seems like they actually just copy the settings from your Mastodon account. It's still a separate account. I'll keep checking in case I missed something.
It doesn't even sound like they securely bring over the password, which presents a little bit of a phishing threat if people are re-entering their Mastodon password into third party apps like this one.
Edit: Yup, here's a video/gif. I'd do a federated link but I'm not sure Lemmy supports that yet.
You could totally copy someone else's Mastodon this way, so that's fun.