It all comes down to, basically, simple mathematics. It takes more processing power, CPU cycles, to examine a full resolution video stream, say 4MP which can translate to 1.2 megabits per second, versus a 1MP stream at say 250 kilobits per second. The math shows a six to one reduction in bits per second, the information being processed. The CPU then will be loaded less, by at least a factor of six or so, in this example. It is more nuanced than this, certainly, but the exact how and why isn't all that critical. The overall result is what counts.
Recording the full stream is not a particularly CPU intensive operation. In essence the video stream is basically just passed through to the hard disk as it comes in with very little processing that adds very little load to the CPU. It's processing the video for motion, examining every pixel for differences, that takes processing power and CPU cycles. If there are less pixels to process, the load is correspondingly lower.
With the upgrade to sub streams in
Blue Iris, which is about a year and a half old at this point, being able to select exactly how the recording and processing is done has been the most valuable improvement I've seen in Blue Iris as a four or five year user of Blue Iris.