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How can data in a phone be encrypted? Will this protect data in case a phone is lost or stolen? Will this protect data that are being sent, for instance to cloud storage?
 
How can data in a phone be encrypted?

Most devices have data storage encryption as an option in the settings. And I believe it's mandatory for 6.x and 7.x Android versions. Basically the data is securely scrambled and locked with a password, pattern, fingerprint, iris, etc.

Will this protect data in case a phone is lost or stolen?

It should do, provided the thief doesn't know the password, or cut-off the owner's finger, or pluck-out their eye or something.

Will this protect data that are being sent, for instance to cloud storage?

Provided the whatever cloud storage is secure, it should be, e.g. Google Drive.
 
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