One of the steps when installing a namespaced managed package is shown below. What will the ***Automatically attempt to rename conflicting components in installing package*** option do when there's a conflict? It sounds as if components within the managed package that is being installed will be renamed. 

I always thought that a managed package was a self-contained application that cannot be modified. Is there any documentation on how this renaming is done?

![Package Conflict Options][1]


  [1]: https://i.sstatic.net/XIbMw.png