In brief
It observes a predicted level of wear, but does not replace the assessment of the entire braking system.
Useful to know
The wear sensor is built-in or placed to the pad and provides information when certain wear is reached. Bosch describes single-step and multi-step solutions where an electrical circuit and algorithms can be involved in the evaluation of remaining use. [1]
The indication is not a direct measurement of all the conditions on which the stop depends. It does not describe in itself the state of the disks, the liquid, or the other mechanisms. The remaining resource, when calculated, is an estimate in a specific system.
If a warning appears, read the vehicle manual and arrange for the necessary inspection. Do not rely on a lack of noise as evidence of sufficient thickness, nor on a lack of warning as a complete review. A sensor is a single channel of information; the number and placement of such sensors depends on the model.
Sources
For further detail and to check the information: