Caution: I'm not a card-carrying electrical engineer, I escaped from EE into pure math and CS before I took the signal processing classes so this is all stuff I acquired on the side, and could be quite wrong. PCM audio represents the original waveform as a sequence of regularly spaced samples. Each sample is encoded as a fixed-point waveform amplitude value. For example, the standard CD (Redbook) is 44.1/16, meaning 44100 samples/second where each sample is a 16-bit number. If that sequence of numbers at that rate is directly fed into the Modi's DAC chips, the resulting waveform will look like a staircase on an oscilloscope because the chip maintains a fixed output amplitude for the whole 1/44100 fraction of a second for that sample. To reduce that effect and produce a smoother (smaller stair steps) waveform, the Schiit multibit DACs upsample the PCM stream to a higher sampling frequency by interpolating new synthetic samples between the original ones. For example, 44.1hKz would be upsampled to 176.4kHz by interpolating 3 regularly spaced synthetic samples between each of the original 44.1kHz samples. What should be the value (amplitude) of each of those new samples? That's the job of the combo-burrito filter. It applies a Schiit-proprietary computation to the original samples to create the new ones in a way that optimizes the "smoothness" of the upsampled stream according to criteria decided by them. Since this is a proprietary design, I don't know the exact mathematical optimization objective they use in their upsampling algorithm, but it sure sounds good! Finally, why is this called a "filter"? Well, that's the jargon of digital signal processing: anything that transforms a sample stream is called a filter, because if you look at it through the lens of Fourier analysis, it changes the decomposition of the signal into periodic components (similarly to an analog filter). Of course these filters are designed to not affect periodic components with audible range frequencies, but ultrasonic components affected by these filters can still mater audibly if they interact with nonlinearities in the circuitry to create aliasing, where energy at a higher frequency leaks into lower frequencies in the audible range.