Final answer:
Sitecore stores component parameters as name-value pairs within the Items table of the database, linked to the components via references that include layout details and rendering configurations.
Step-by-step explanation:
In Sitecore, component parameters are stored within the Sitecore database in what is called the Items table. Each component or rendering in Sitecore has an associated item in the database. Component parameters are stored as name-value pairs within the item's 'Fields' section, which are based on the data template that defines the component's schema.
When components are added to a page, they are linked by a reference that specifies the item that they draw their data from. These references include layout details in the 'SharedFields' and 'VersionsFields' tables to apply the parameters to the appropriate rendering. For those familiar with Sitecore's architecture, the Rendering Parameters template is used to define the parameters that can be configured for a component, and the values are then stored as part of that rendering's configuration in the database when added to a page.