I like the disk encryption wiki from valinux. It is reasonable to assume most disk encryption schemes work in a very similar manner, and may be implemented entirely based on well-established open standards.
I would go so far as saying that if you discover anything proprietary in a disk encryption scheme, to stay away from it since it could very well conceal a backdoor. PBKDF2 is a fairly popular and standards based key derivation function. AES is most likely the encryption algorithm of choice, preferably with 256 bits, and if you want one of its stronger variants, look for GCM.
Copied some informative diagrams below from the wiki.
╭┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈╮ ╭┈┈┈┈┈┈┈┈┈┈┈╮
┊ mount passphrase ┊━━━━━⎛key derivation⎞━━━▶┊ mount key ┊
╰┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈╯,───⎝ function ⎠ ╰┈┈┈┈┈┬┈┈┈┈┈╯
╭──────╮ ╱ │
│ salt │───────────´ │
╰──────╯ │
╭─────────────────────╮ ▼ ╭┈┈┈┈┈┈┈┈┈┈┈┈╮
│ encrypted master key│━━━━━━━━━━━━━━━━━━━━━━(decryption)━━━▶┊ master key ┊
╰─────────────────────╯ ╰┈┈┈┈┈┈┈┈┈┈┈┈╯
╭┈┈┈┈┈┈┈┈┈┈┈┈╮
┊ master key ┊
file on disk: ╰┈┈┈┈┈┬┈┈┈┈┈┈╯
┌ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┐ │
╎╭───────────────────╮╎ ▼ ╭┈┈┈┈┈┈┈┈┈┈╮
╎│ encrypted file key│━━━━(decryption)━━━▶┊ file key ┊
╎╰───────────────────╯╎ ╰┈┈┈┈┬┈┈┈┈┈╯
╎┌───────────────────┐╎ ▼ ┌┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┐
╎│ encrypted file │◀━━━━━━━━━━━━━━━━━(de/encryption)━━━▶┊ readable file ┊
╎│ contents │╎ ┊ contents ┊
╎└───────────────────┘╎ └┈┈┈┈┈┈┈┈┈┈┈┈┈┈┈┘
└ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ┘
In a nutshell:
- Passphrase you will need to remember, and enter in order to mount the disk or partition.
- Passphrase churned through key derivation function to generate master key. There should be enough iterations such that it takes the function ~1s to process on your computer.
- Master key then be used to decrypt a keystore file, which contains a file key that is actually used to actually decrypt or encrypt your disk data.
Q. Why not have a master key that directly encrypts your data, why separate master key and file key?
A. If you decide to change your passphrase you have then have to re-encrypt your disk for the master key only scheme. On the other hand, if you have a separate master and file key, then if you change your passphrase you only need to re-encrypt the file key.