How does our computer know when there is internet available and when it disappears?
How does Windows know exactly when the computer is connected to the Internet?
This article answers the question by explaining the whole process of Internet connection monitoring in Windows.

This mechanism is considered to be a smart notification system for users to know about their current internet status.
These two tasks are performed independently.
Once NCSI resolves fordns.msftncsi.com, it then checks if the page is accessible.

If the page is accessible, the online grid icon in thenotification trayshows that it has internet access.
However, if the page is inaccessible, it prompts that additional authentication may be required.
This would mean that NCSI would not be able to communicate withwww.msftncsi.comandwww.msftconnecttest.com.

This would in-turn prompt Windows to show that there is no internet available on your rig.
A workaround for this is to allow both inbound and outbound communication through the firewall for the above-mentioned URLs.
What about your privacy?

Although they claim that the information is kept confidential, some people can still be uncomfortable with it.
On the contrary, theNotification traywill now show that there is no internet access, even when there is.
However, in our case, all the applications were functioning as usual.
We hope that you find this information valuable.
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source: www.itechtics.com