I assume you are looking for a pretty specific answer. If this is less information than you are asking for feel free to comment or edit the question and I will expand.
As you know, the frontend represents expressions using boxes. These are wrappers that are concerned with appearance, and are peripheral to core symbolic evaluation. Therefore, each step of the evaluation procedure generally entails stripping boxes, evaluating symbolically, and adding boxes back as appropriate. But this is happening at every layer of an expression, and how boxes are dealt with may itself involve some evaluation.
Loosely speaking, then, when you hit SHIFT+ENTER, three things happen at every layer. Mathematica uses MakeExpression to rearrange boxes into canonical forms, then it evaluates those expressions, then it wraps them using MakeBoxes. We can override different parts of this process as we please.
Let's start at the beginning.
MakeExpression[RowBox[{"f", "[", x_, "]"}], form_] := (
Print@"MakeExpression";
MakeExpression[RowBox[{"g", "[", x, "+", "2", "]"}], form]);
f[1 + 2]
MakeExpression
g[5]
We can see that this transformation occurs prior to evaluation.
f[1 + 2] // Hold
MakeExpression
Hold[g[(1 + 2) + 2]]
Similarly,
g[x_] := (
Print@"g";
h[x]);
f[1 + 2]
MakeExpression
g
h[5]
Once evaluation is complete, the expression is rewrapped.
MakeBoxes[h[x_], form_] := (
Print@"MakeBoxes";
MakeBoxes[i[x], form]);
f[1 + 2]
MakeExpression
g
MakeBoxes
i[5]
What comes out of MakeBoxes does not get interpreted as input.
Attributes@MakeBoxes
{HoldAllComplete}
MakeBoxes[h[1 + 2]]
MakeBoxes
RowBox[{"i", "[", RowBox[{"1", "+", "2"}], "]"}]
RawBoxes is just a wrapper that tells Mathematica not to transform what's inside into boxes. In other words, it indicates what's inside has already been wrapped, and Mathematica renders it directly.
% //RawBoxes
i[1 + 2]
We can confirm that this is not being interpreted as input.
i[x_] := "foo";
MakeBoxes[h[1 + 2]] // RawBoxes
MakeBoxes
i[1 + 2]
But copy that and paste it in a new cell:
i[1 + 2]
"foo"
And we are back full circle to MakeExpression.