Hello Ash,
Depending upon the Load balancer type,
algorithm works differently. For HTTP(s) load balancer, Balancing mode can be configured which can be based on CPU Utilization or Rate requests per second (RPS). For network load balancer algorithm, refer to this
documentation link.
There is also a
feature request in place to configure load balancer to distribute traffic to instance group bu percentage. You can "Star" t
his feature request to show your interest.
I would recommend you to go through the
documentation for the load balancers for more information on the load balancing algorithm, component and their functionality.