When you enable FileVault a very long encryption key is created. Your macOS account password is used to encrypt this key and it is stored on the file system.
When you are asked to give your password to unlock the disk, your macOS account password is used to decrypted the very long encryption key and that encryption key is used to decrypt data read from your disk and encrypt data written to your disk.
If you allow other user accounts on your Mac to also decrypt the FileVault data, then the very long encryption key is again encrypted using that account's password, and that is also stored on the disk, so that if they are the ones booting the Mac, their password can be used to decrypt the very long encryption key and use it to decrypt/encrypt the disk.
It is the same very long encryption key for both accounts.
If you change your password, part of the password changing process is to use your own password to decrypt the storaed very long encryption key associated with your account, and re-encrypt it using your new password and storing it. If the other user changes their password, the same thing happens to their encrypted copy of the very long encryption key.
Generally when macOS is enabling FileVault, you are offered the option to escrow the very long encryption key encrypted with your Apple ID and password, then stored it with Apple. Apple does not store your Apple ID password in plain text, so Apple cannot decrypt your encryption key. It can only be sent encrypted back to you, where your Apple ID password is used to unlock it on your Mac.