The link is removed. Terminal 2 supplies electric to the programmer switches,then any thermostat switches, then which ever motorised valve arrangement is fitted. When a successful call for heat is received through all those items then it becomes a switch live and returns to the boiler to power terminal 1.
Most uk installers just remove the link and supply their switch live to terminal 1.
that boiler is used in many countries so there are wiring can be varied to suit each country.
Alpha also supplied many boilers with an attached 240v mains fly lead, that's another
issue