Just like in the signal stabilizer, there is a transistor in its internal structure.
The signal converter inverts the signal at its input. If the input value is 0, it is converted to 1, and if it's 1, it's converted to 0. In our circuit, 0 Volts correspond to 0, and 5 Volts correspond to 1.
It reverses the incoming signal from the circuit and passes it to the next module. Imagine that you placed a Cable LED right after the Button, and when you press the Button, the LED lights up. When you place an Inverter between the Button and the Cable LED, the Cable LED will light up when the button is not pressed and turn off when it's pressed. If you want your circuit elements to work, the Inverter can help you as it functions differently from normal.