It is stored as a Double variable, with the date as the integral part, and time as fractional part. The date is stored as the number of days since 30 Dec 1899. Quite why it is not 31 Dec is not clear. 01 Jan 1900 has a days value of 2.
Because TDateTime is actually a double, you can perform calculations on it as if it were a number. This is useful for calculations such as the difference between two dates.
No local time information is held with TDateTime - just the day and time values.