Generally, this works the way you would hope – first TiddlyWiki renders the “furthest down” tiddler, then it moves one level up and includes that content in that tiddler, and so on until it comes to the “top-level” transclusion.
There are some edge cases, which mostly involve the complexities of TiddlyWiki's concept of the current tiddler. We'll talk about the current tiddler in the next section.