ASCII to binary
Each character becomes its code in binary, padded to eight bits. "Hi" becomes 01001000 01101001. Padding to a fixed width is what makes the result decodable again.
How to encode text as binary
Fixed-width padding is the whole trick. Without it, the letter A (1000001, seven bits) and a control character could run together ambiguously. Padding every character to eight bits means a decoder can simply take them eight at a time. It is the same principle as fixed-width fields in a data format, and the reason ASCII was defined as a seven-bit code stored in an eight-bit byte.
With the bits laid out, the design of ASCII becomes visible. A is 01000001 and a is 01100001: one bit apart, the one worth 32. A space is 00100000 — that same bit on its own. Flipping bit six is therefore the entire case conversion for the Latin alphabet, which is why old code changes case with a single bitwise operation rather than a lookup.
These are code points rather than UTF-8 bytes, and above 127 the two part company. é comes out as 11101001, a single eight-bit group, while its UTF-8 form is two bytes, 11000011 10101001. An emoji is wider still. Neither answer is wrong; they answer different questions, and a decoder expecting bytes will not read code points correctly.
Questions
01000001: code 65 padded to eight bits.
So a decoder can split the stream at fixed intervals. Without padding the boundaries are ambiguous.
They are 32 apart and 32 is a single bit: 01000001 against 01100001. Flipping it changes the case.
A space is 00100000, code 32. It encodes like any other character.
Only below 128. é is 11101001 here as a code point; as UTF-8 it is 11000011 10101001.
Yes, but they exceed eight bits since their code points are far above 255.
It uses Unicode code points, which match ASCII exactly for the first 128 characters.