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Restoring Cloud Backup

I have a cloud backup on one of my servers backing up a zipped sql file daily. The original .sql.gz archive is ≈400 MB, while each backup seems to range erratically from a few KB to maybe 15 MB, with random ≈200 MB backups here and there. I did not initially see the larger backups, only the <15 MB ones. So I messaged support and they said the backups were incremental, that's why they were so small. OK, I guess that kind of makes sense, but here are my questions:

-How is the cloud backup agent able to see only the changes of the compressed file? I would think any change to the original file would make the new zip look different than the last, resulting in the whole thing being copied down.

-When I go to try to restore a backup, the restored file only seems to be the size of the incremental backup, not the full archive. Do I have to somehow merge the incremental back up with the older backups?

Let me know if I need to clarify anything or provide more information.