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How is Lighting built in UE4?

Hello there, newbie to Unreal Engine here.

So I’m writing a report and it requires that I explain how lighting in Unreal Engine is built, and be built I mean how is it affected when the build feature has been used.

Am I right to think that Lighting is built in UE4 by baking it?

Building is another name for baking.

Are you doing this as part of a course?

I’m assuming they probably want to hear something about lightmaps on objects and how the shadows are stored in those lightmaps. And probably much more:

Sorry I looked for a quick summary, but it’s a massive topic, and I can’t find one…