Gas in the coil (radiator) is pressurised and so becomes extremely cold, pretty much like when you shake a can of softdrink, the ambient air is blown over the coil and the moisture in the air condensated on the coil because that is colder than the air. A sensor periodically switches the pressurising pump off and the condensation which has turned to ice melts and runs in the water reservoir. Then the cycle starts all over again. You can get a surprisingly large amount of water out of a damp room/house.
Someone else may have an easier explanation.