For example, if an application you're using has left things in cooked mode, and you press ctrl+c, the application will never "see" that keystroke; something higher up in the input chain (I believe Linux's TTY driver) will see it, swallow it, and send SIGINT to the application.
Applications can also put the tty into "raw mode", where this won't happen; in that case the app is responsible for implementing those "expected" keystroke behaviors, if it makes sense for the application to do so.
So no, I do not think that what you wrote is correct. From what I can tell, the line-by-line mode is “extproc”.
min N with -icanon, set N characters minimum for a completed read
which suggests that if you set -icanon (e.g. cbreak) then reads may complete after 1 character.Also on macOS the documentation for cbreak is different, it lists a bunch of settings including -icanon, it's Linux that makes it literally an alias for -icanon.
Raw means send characters immediately, literally. Cooked imply some some of the flags are on, specifically (from memory) icanon, echo, among the `lflags`. Plus others.
Further down among `cchars` you'll see werase = ^w and kill = ^u. Here kill means kill (erase) the line, not send a signal.