Generally speaking, an engine diagnostic machine is plugged into the car’s computer. The computer returns a diagnostic code that can be used as a reference against a list of codes from the manufacturer. For instance, if the engine is in fine working order, then the device will say so or, alternatively, if there is a problem, a code (or several) will be displayed.
Codes can mean a whole host of things, and it is the mechanics job to determine what could be causing the code to be flagged up on the device, giving the vehicle owner some sort of idea about what it will cost to rectify.