A DMD panel's micromirrors are mounted on tiny hinges that enable them to tilt either toward the light source in a DLP™ projection system (ON) or away from it (OFF) — creating
a light or dark pixel on the projection surface.
The bit-streamed image code entering the semiconductor directs each mirror to switch on and off up to several thousand times per second. When a mirror remains on average longer in the on state than in the off state, it introduces a light gray pixel. If the off state dominates, a dark grey pixel is projected. In this way, the mirrors in a DLP™ projection system can reflect pixels in up to 1,024 shades of gray to convert the video or graphic signal entering the DMD into a highly detailed grayscale image.

DLP vs. LCD Video