The iMac display will always use all physical 4480x2520 picture elements (pixels) on the LCD.
The only difference between the different "looks like" settings is how macOS works internally is adjusting the user interface elements.
True most modes will be scaled to fill the entire LCD. Modes that don't have the same aspect ratio may have black bars on the top or bottom or the mode may be stretched depending on whether the GPU or the display is doing the scaling and what settings the display has for changing the zoom preference. Mac displays have no settings but third party displays usually do.
There is a difference between the number of pixels used for each mode. Some modes have more or less pixels than other modes.
The iMac uses the frame buffer pixels which can be up to 16K x 16K or more depending on the drivers and hardware. The GPU can scale that up or down to an output resolution which is limited by the connection bandwidth. The display can scale that output resolution up or down to a display resolution limited by the display's resolution and scaler capabilities (if it has a scaler).
For example, there's multiple ways to do 2560x1440 to a 4480x2520 display.
1) 2560x1440 framebuffer and output resolution scaled up to 4480x2520 by the display. An old computer that only supports DisplayPort 1.1 would use this.
2) 2560x1440 framebuffer, scaled up by the GPU to 4480x2520 output resolution, no scaling by the display. This is a low resolution mode.
3) looks like 2560x1440 retina mode 5120x2880 framebuffer scaled down to 4480x2520 by the GPU and output to the display which does no scaling. This is the normal macOS method.
4) looks like 2560x1440 retina mode 5120x2880 framebuffer output as 5120x2880 and scaled down to 4480x2520 by the display. This requires an EDID override to make macOS think the display can use 5120x2880. Many displays don't have a scaler that can scale down like this. My 4K display can take 8K30 input and scale it down to 4K.