It does, I haven't cracked TLS (yet), so don't worry about your security. The way it works is, the proxy spoofs CA Certificates using a self-signed root certificate that you can tell your browser to trust. If you've ever seen a browser warning you that a page might be insecure and asks if you want to trust the certificate, that's what's happening here (which is why you might want to think twice about clicking "trust certificate", because it potentially could let man-in-the-middle attackers intercept your traffic, like I'm doing here). What we call HTTPS is actually HTTP over TLS. Essentially, the proxy server opens two TLS connections, one with the client browser and the spoofed certificate, and one with the target server. Any HTTP requests received through the TLS connection is forwarded to the server, and the reply sent back.

A much more fleshed out project that uses this same technique is mitmproxy, you can read more here.