That’s not quite what masquerade does. Masquerade enables NAT, essentially.
Without masquerade, the router would send packets out like 192.168.0.109->8.8.8.8 and your ISP would be like “what is that IP I don’t know how to route that”. With masquerade on, the router remaps it to its own WAN IP so you have like 3.16.87.54->8.8.8.8, your ISP can handle that, and when the reply comes back, the router then switches it back to the correct internal IP.