Merging yaml file content

Everything I can find online states that Yaml files do not support including/merging contents of other yaml files. How is SG implementing the include statement of merging multiple yaml file content in sgtk?

I would guess by the method Toolkit reads them, filnds the included file and updates the data from that file and merges it into the data it’s collected until then.

This is extended functionality provided by the template_includes module.