The continuity test applies a very small voltage to the circuit and check what current flows through it. If the current is larger than the lower limit (for continuity test of your multimeter), it beeps. For example, you cannot have a beep testing a diode, because it has a voltage drop (about 0.7V). If you measure a resistor with less than 10 ohms, probably you will hear the beep. If you check your multimeter DS it will not be hard to specify the maximum resistance or voltage drop to make it beep.
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