Backlight
A backlight supplies the light behind the image in an LCD panel. Adjusting it changes the panel's illumination; software dimming instead changes the image sent to the display. Displays with self-emitting pixels, such as OLED panels, do not have this kind of backlight.
BetterDisplay may use a device's brightness or screen-off functions to adjust or switch off its illumination. The available command and its effect depend on the controller and device. A backlight-off action is separate from disconnecting the desktop from macOS.
See Brightness, Soft disconnection and Management and toggles.