The source volume's contents will be erased and replaced with the contents of its Time Machine backup, but the backup won't be erased—not right away, that is.
That means after you restore the Mojave system, the apps and files you added since installing Catalina can be selectively restored from a more recent backup.
Caveat: if you want to restore those apps and files, you must obviously create that more recent TM backup prior to restoring the older system. It is conceivable doing so will require Time Machine to reclaim the space occupied by older backups—possibly eliminating the Mojave system you wish to restore. Without knowing the capacity of your TM backup device, I cannot provide assurance that won't happen.
In an overabundance of caution consider obtaining an additional backup device and adding it to Time Machine, which will back up to both, or as many as you wish. One and only one backup isn't a robust backup strategy anyway.