Yes, you understand correctly. The charging circuit in the phone will cut power to the battery when it is full, and it won't kick back in again until the battery has depleted by a few percentage points. The phone will report to the user that the battery is at 100% the whole time, but in reality it may be depleting down as far as 95% before the charging circuit kicks back in.
So, no, you won't risk over charging your phone by leaving it plugged in overnight.
That said, if you wanted to preserve your battery as long as possible, the optimal method (with lithium ion batteries) is to keep it between 20% and 80% charged. The more time spent outside that range will decrease the useful life of the battery. But, that's not really a realistic or practical way to use your phone for most people.
A final tip would be that temperature is also a big determining factor in your battery's lifespan. If your phone has any kind of fast/dash charging mode, this will generate much more heat than standard charging. You're better off charging slowly, if you can afford the time.