How do the texture quality settings in ini or launcher impact texure mods

[zlorenzx]

This is a more general question of understanding.

If i change the setting "Texture Quality" in the Skyrim launcher to lower levels (like from ultra to low), how will modded textures behave?

 

Will they be downscaled soomehow or replaced with worse vanilla-textured files; or not impacted at all since they're not in a game bsa?