What EDID is
EDID stands for Extended Display Identification Data. When a PC, player or camera is connected over HDMI, it reads the display's EDID first and then picks a resolution, refresh rate and audio format. With a direct cable this happens automatically. With a wireless link in between, the source is talking to the transmitter, which has to answer on behalf of the far display.
How EDID pass-through works
At power-up the receiver reads the display's EDID and sends it back over the link, and the transmitter presents it to the source. The receiver reads it again whenever the display powers up, is hot-plugged or changes its EDID. The source then outputs what the screen can really show, with no manual resolution setting on site.
What goes wrong when EDID is wrong
A wrong EDID typically shows up as a black screen, no sound, resolution dropped to 1080p or lower, or a high-refresh 1080p monitor stuck at 60Hz. Another case is when the link is not up yet and the source finds no EDID at all; some devices then output nothing. That is why the transmitter presents a default EDID until the link is established.
ATE9430R / ATE9461 read the display's EDID and send it back; ATE9430T / ATE9460 present it to the source. Before the link is up the transmitter presents a built-in default EDID, so the source always has an output. HPD hot-plug state is synchronized in real time. High-refresh 1080p (up to 240Hz on ATE9460 / ATE9461, 120Hz on ATE9430T / ATE9430R) requires the display's EDID to declare that refresh rate.