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Backed mode (default) - you should see the changes in your URLs in the media gallery. If you see them in the admin section. It is the default mode and it is suitable for the biggest part of the websites.

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JavaScript enabled mode - here you will not see any changes in the URLs in the media gallery, but you should notice them in the frontend part. It depends on your theme also, but usually, you should be able to see an additional "ci-src" attributes to your <img> tags. In some cases - like Elementor, it is better to use the backend mode as those types of redactors use various ways of including images, which are hard to detect in the frontend part.

Screenshot: