1. Temperature Sensor (Coolant Temperature Sensor - CTS): This sensor is located in the engine block or cylinder head, submerged in the engine coolant. It's a thermistor, meaning its electrical resistance changes significantly with temperature. As the coolant heats up, the sensor's resistance decreases, and vice-versa.
2. Wiring: The CTS is connected to the instrument cluster (gauge) via a wire. This wire carries the electrical signal representing the coolant temperature.
3. Gauge (Instrument Cluster): The gauge itself contains a meter movement that responds to the changing electrical resistance from the CTS. A calibrated circuit in the instrument cluster translates the resistance into a needle position on the temperature scale. In essence, the change in resistance from the CTS causes a corresponding change in current flow that's interpreted by the gauge to display the temperature.
In short: The engine coolant heats the CTS, changing its resistance. This change is transmitted as an electrical signal to the instrument cluster. The instrument cluster processes this signal and moves the gauge needle to indicate the engine's coolant temperature.
If your temperature gauge isn't working correctly, the problem could be in any of these three areas: a faulty CTS, damaged wiring, or a malfunctioning instrument cluster. Troubleshooting would involve checking the CTS with a multimeter, inspecting the wiring for breaks or shorts, and possibly testing the gauge itself (though this is more complex and often requires specialized tools).