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This information is available even if the encoder temporarily shut down. In geared designs, a primary gear meshes with an encoder shaft that moves a secondary gear, and so on: Each gear is an etched disc for which rotation is tracked by the encoder sensing and electronics; the encoder combines the output of all discs to count the total number of shaft turns.
Parameters affecting accuracy include the number and accuracy of the patterns or slots on the code disc, and the rigidity and stability of the mechanical assembly. The number of optical disc slots dictates direct-read (native) resolution. Too many lines or slots decrease the light that can pass because the slots are necessarily smaller to fit on the disc.