Regarding iCloud 2-step, what happens when it asks for your iCloud info?

[mayconvert]

As many of you know, Apple has enabled 2 step verification on iCloud accounts.
Not sure if anyone would Know the answer without trying it, but here is my question:

You enable 2 step on you iCloud.
Then you wipe your iPhone.
As the phone starts its normal start up, What happens when it asks for your iCloud info?

The reason I ask is because the phone starts out with
Language
Region
Connect to wi-fi
Enter iCloud info.

There are several more steps before the phone is able to receive Text messages so that you can verify your iCloud log in.

I am curious what happens.