It's akin to a 4-wire repeater setup in the conventional world.
In the most basic terms, the system consoles are keying the repeater up directly on the output frequency for whichever traffic/voice channel is assigned to the active talkgroup, while the subscriber radio out in the field is still talking in on the repeater input frequency. Just like a 4-wire setup, the console audio preempts the repeated audio on the output frequency without actually "stepping" on the input frequency, so the subscriber radio can still be heard on the dispatch console. Often times if the dispatcher stops talking you can actually hear the subscriber radio's ambient audio coming out of the console speaker and getting back into the mix through the console mic.
Remember, all trunking really is are a bunch of repeaters that are networked together and controlled by a computer that tells each subscriber radio which repeater to use for whichever talkgroup those radios are active on/affiliated with. So whether it's an old analog system or a modern P25 Phase II system, it's really nothing more than a repeater with an input frequency and output frequency.
By the way, P25 Phase II (and other TDMA systems in general) has some features that are not available with non-TDMA systems, such as true subscriber preemption. While a subscriber radio is transmitting on one time slot of a frequency, it's also listening to the other time slot. It can do this because TDMA subscribers transmit in very quick pulses (power amplifier on/off/on/off/etc.) rather than a continuous, uninterrupted transmission. The system broadcasts signaling on both time slots even when they are both occupied with active voice transmissions, and the subscribers can receive those transmissions and act accordingly. It's a very handy feature, in particular the ability for the system to direct a subscriber to "stop transmitting" so it can receive an emergency transmission. Even if you have the PTT button held down, the radio will "bonk" and stop transmitting. Another neat feature is the ability of the system to vary the power output of the subscriber if "adaptive power" is enabled in the codeplug. So rather than operating at full power, if the subscriber has very good inbound signal, the system can direct it to back down to a mid-power setting. Good way to conserve battery runtime on portables, especially for systems that have very robust coverage.