The chip accepts commands like "seek to track xyz", "format track", "read track", or "read or write a range of sectors", and the chip would go ahead and do its thing (with data transfers optionally via DMA - but this isn't supported in the CPC) and a couple of seconds later it would tell you "ok I'm done", or "oops I encountered this error".
One would rather expect this sort of functionality implemented in a high level operating system function or in some sort of software driver instead of baked into hardware. This also explains the chip's complexity I guess (e.g. 22k transistors, 6x more than a 6502 and 2.5x more than a Z80) - because it actually is a fullblown CPU with a microcode ROM and some floppy controller bits tacked on the side ;)