An iPhone only offers a sound as a ringtone if it is an M4R file, which is AAC audio with a ringtone extension, and no longer than about 40 seconds. After converting, the M4R still has to be added to the phone, either by syncing it with Finder, iTunes or the Apple Devices app, or by importing it through GarageBand on the iPhone.
The defaults suit most files. Under Options you can choose the bitrate and trim the start and end.
The conversion uses your browser's own video and audio codecs (WebCodecs), with hardware acceleration where the device has it; the file is read from disk as it goes and can be up to 2 GB. Where the browser lacks a codec, the page falls back to the compatibility engine. An iPhone ringtone is limited to 40 seconds, so only 40 seconds are kept, from the start point you set under Options (the beginning by default). M4R is written at 192 kbps unless you choose another bitrate.