An overview
The automatic backup feature is created by taking the data created within your app and uploading it to the user's Google Drive account, keeping it encrypted. This doesn't affect the user's drive quota or your quota, for that matter. Each app is limited to 25 MB backup per user, and once you reach that amount, your app will stop backing up. Also, note that it's completely free!
Backup is done in cycles of 24 hours, nights only, and it's done automatically, usually when the device is idle, charging, and connected to a Wi-Fi network. These conditions are there for battery efficiency, data charges, and, of course, to keep the user interference to a minimum. Android systems have a Backup Manager service, which uploads all the available backup data to the cloud. Switching to a new device or uninstalling and reinstalling the app will trigger the restore operation, which in turn copies the data into the app's data directory.
Note
This new behavior allows you to keep using your existing...