every digital machine like microcontrller can only read binary codes. text which is displayed on any display device is actually a predefined memory for the character for as.
there are many condition behind this but in simple way
to display character 'A' in 8 bit processors
if there is 01000001 bin code in flash memory than hardware will show it as a char 'A'
u can find ascii codes in table below
most common way is to use standard such as ASCII but if you have something special, you may encode anything to be anything you need or like.
in ASCII word "Hello" would be encoded character by character:
H $48 = 0100 1000
e $65 = 0110 0100
l $6C = 0110 1110
l $6C = 0110 1110
o $6F = 0110 1111
but you can do anything else:
0000 "Hello world"
0001 "My name is Bob"
0010 "Vacation time...."
etc.
this is equivalent to what assembler does for example when when translating source code into machine code.