The liquid is merely a heat transfer mechanism between the CPU and the radiator.
The block that is attached to the CPU transfers CPU heat to the liquid, which circulates through the radiator.
The radiator, via the fans and fins, transfers that heat to the room air.
Just like the radiator in your car.
As far as ambient air temp affecting? YES!
A CPU in a cold room will display a lower operating temp then a CPU in a hot room. CPU cooler efficiency is the delta between ambient temp and operating temp.
But since humans like to live within a pretty small range of room temps, this is usually not an issue.
If you were running this PC in an uninsulated attic in the summer, it would show vastly different temps than if you were running it...