Chromecast does not natively support AC-3 and E-AC-3 (Dolby Digital and Dolby Digital+), thus the app transcodes the audio track
to either mp3 (stereo) which is the default, or if 'Settings > Chromecast > Preserve multichannel audio' is enabled, to multichannel Opus.
Just the audio track of the video is transcoded, the video itself is unmodified, so it is a rather lightweight transcode that does not alter video quality.
If you have a Dolby Digital decoder hooked to your setup, you can try enabling 'AC-3 Passthrough' and 'E-AC-3 Passthrough' in Settings > Chromecast.