Hi Vikash.
The data available through the data model is residing in containers, and is not connected to the staging area. When a transformation is run the data is read from the staging area, transformed into types according to the data model and written to the containers used by the data model. This allows you to mix and match data, and also allows you to update the data in the containers directly using REST API or GraphQL mutations. You may read on up the details of the persistence layer of the data model here: https://developer.cognite.com/dm/concepts/containers_views
Additional details of transformation concepts can be found here: https://docs.cognite.com/cdf/integration/concepts/transformation/
I hope this clarifies the concepts a bit.