I used SDR# at first on an IC-R8500 years ago with discriminator output.
Your RTL dongle consider as a radio without switches and knobs. You need a front panel to do everything. Even to 'turn it on'.
Preamp and front end filtering (very little on these if at all) is on the radio, or "donngle".
Software is used to control tuning, modes like SSB, AM, FM, Etc.
ALL of the signal processing is done in software. For FM stereo the entire circuit is done in software. Even RDS decoding.
Tuning is done in the dongle by way of software. Signal's are amplified in it and sent to software.
Now. So you know. We COULD upload what is known as the RF capture files, I/Q files and you could download and decode them using SDR software. One example would be a Meteor satellite pass. You could get the file and process it on your software and the various modules could decode and produce the same image we have.
I hope you thought forward enough to also order antenna port adapters and consider a proper antenna to use with this mysterious new toy.
The mystery will go away soon. But learn the basics before going on to more advanced decoding software.