The analogReferece() sets the reference voltage for analog input. It just sets a global variable.
Source Code
The analogReference() is defined in hardware/arduino/avr/cores/arduino/wiring_analog.c as below.
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uint8_tanalog_reference=DEFAULT;voidanalogReference(uint8_tmode){// can't actually set the register here because the default setting
// will connect AVCC and the AREF pin, which would cause a short if
// there's something connected to AREF.
analog_reference=mode;}
The input is mode and its type is uint8_t. The mode can be one of ‘DEFAULT’, ‘INTERNAL’ or ‘EXTERNAL’.
This function stores the mode into the global variable named analog_reference. The analog_reference is used in analogRead().
/*
Copyright (c) 2016 garretlab.
Added source code explanation by garretlab.
*//*
wiring_analog.c - analog input and output
Part of Arduino - http://www.arduino.cc/
Copyright (c) 2005-2006 David A. Mellis
This library is free software; you can redistribute it and/or
modify it under the terms of the GNU Lesser General Public
License as published by the Free Software Foundation; either
version 2.1 of the License, or (at your option) any later version.
This library is distributed in the hope that it will be useful,
but WITHOUT ANY WARRANTY; without even the implied warranty of
MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU
Lesser General Public License for more details.
You should have received a copy of the GNU Lesser General
Public License along with this library; if not, write to the
Free Software Foundation, Inc., 59 Temple Place, Suite 330,
Boston, MA 02111-1307 USA
Modified 28 September 2010 by Mark Sproul
*/