I think it will vary by manufacturer. The aquarite unit I've got appears to be using a simple inductive sensor. I've not seen any schematics with the expected values - they probably don't want you fixing things when you can be replacing them.
The pool pilot units use what they call a "tri sensor" and I'm not sure at all how they work.
I think aqua-rite and pool pilot both have good reputations as far as brand selection goes.
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