Excellent question, Tess!
Right now, Community Events submits events to the same calendar as The Events Calendar–the difference is that visitors can submit events to the calendar without having to log into the back end of your site. Kinda like bringing the back end event publishing form to the front end of the site. 🙂
The calendar itself is a single calendar so all events will display in the same place. However, at the same time, the calendar generates unique URLs for things such as Categories. So, for example, you could theoretically categorize specific events and link directly to that category to display just those events, rather than all events.
Does that make sense and does that help answer your question? Please let me know.
Cheers!
Geoff