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when we design one logic app to send mail to required TO address list from the given mail sender(gmail, outlook), how actually the email sending works in azure logic app? Do we need any Prerequisites like SMTP and relay service required here? Or everything will be handled by Microsoft using logic app?

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In logic apps its handled automatically, for that you need to authenticate the use and then you can send email to any recipient.Rahul Shukla
Unfortunately, there's no way to know how Logic Apps is implemented under-the-covers, and this type of question is off-topic. Logic Apps email connectors are fully documented. I would suggest starting there, to learn more, and then ask specific questions if you run into issues.David Makogon

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You need an SMTP server and credentials to it. You can send emails using the connector - "SMTP" with action "Send Email (V3)" The tricky part would be to setup the API connection for this action. Once, you have the server details on hand, you can "Add New" connection in the below screen:

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