If you're connecting a standard RCA cable to the analog output of the CCA, the signal is converted from digital to analog, so at that point, it's an analog signal and no longer high-res, but yes, it's reading CD-quality files (16/44) or high-res quality (24/96) to create that analog signal. As you pass the signal along that RCA output, however, it is now analog for the rest of the chain, unless you introduce an analog-to-digital conversion, which would not be recommended for audio quality.
The somewhat confusing thing about the CCA is that the RCA output has two capabilities -- 1) the standard analog output via RCA, and 2) a digital output through a mini-Toslink digital cable that also fits into the RCA output. If you hook one of these mini-Toslinks up, then yes, you can then send high-res digital files downstream from the CCA, and yes, those will pass through as up to 24/96 high-res files. You can in other words transport bit-perfect digital files through the CCA, which makes it a useful and inexpensive streaming option for high-res audio. You can ONLY do this with a mini-Toslink cable, not with a standard RCA cable.
Hope this helps, and if it doesn't, I suggest you read some explainers on digital audio -- it's a fun set of rabbit holes.