Setting properties is a last write (to the server) wins (set path foo on block XXX to Y). So text changes overwrite the entire block. The contents of a page are a list of block ids. The operation is "insert id XXX after YYY", and if YYY is not found (deleted/moved), it's placed at the end of the list.
But the biggest impediments to offline for Notion (again when I last checked) were that it doesn't have a full copy of the data and some of the operations are executed server-side (autocomplete dropdowns, search, and some bulk operations). I was hoping they would deal with the former, because it'd make it easier to backup and process my data. But I ended up moving on.
I think they've dealt with some of the search operations, but are still not syncing all of the blocks.