But to answer your question, a bit of both – it’s an interference fit, so the tube compresses a bit and the race expands a bit.
But it expands a lot less than a split race would do.
bencooper, surely supplying a split race encourages people, (even bike mechanics with the proper tools!) not to bother prepping the base of a fork steerer, because the split race will go on by hand or at the very worst, with a couple of rather light taps of a setting tool. I have certainly come across plenty of big brand complete bikes from £500 to £3k with unprepped steerers and crowns and split crown races.
IIRC the cane creek 110 headset 110 year garuantee is conditional on proper installation with a proper headset press, but not conditional upon the steerer/crown having been reamed/faced.