Question about local links

Hello I think you may be able to answer a burning question that I have, I have just learned about file systems in a basic way and it left me wondering how a local hyperlink works.
If I had to place a guess, I would think that if an application, such as adobe acrobat, which is written in c++ from what I have gathered, would give the source a file entry in the file system and an id tag of some sort. Then when it is clicked that entry would point to the file?
Does this make sense? Can anyone explain further?

What I am asking is the order of operations from clicking the my “link” icon to setting the target and retrieving the file.
Thanks for any efforts that you may put to this question\
LeRoy
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