CoreOS's "system volumes" are just rather large initramfs images. This means you don't really have a rootfs partition on CoreOS, just a boot partition (containing a newer and older set of kernel + initramfs) and a "state" partition (containing whatever you like.)
This choice creates a very nice upgrade-management strategy for CoreOS clusters: rather than letting each machine have its own boot partition and asynchronously downloading updates into it, you can just stand up a PXE server to serve the current CoreOS kernel+initramfs and tell your machines to boot from that. Now the entire OS (~200MB) is streamed to each machine on boot; to "update" a machine, you just reboot it. (And, unlike a shared NFS/iSCSI rootfs disk server, you don't have to be careful when updating to tiptoe around the machines that haven't rebooted yet; they just stay happily on the old OS until you kick them over.)
As an added benefit, if the programs you're running on those CoreOS nodes don't need any persistent storage either (i.e. they're not database nodes), then they can be entirely diskless, and just let the rootfs tmpfs hold everything.