Verbal confidence -- prompting LLMs to state their confidence as a number or category -- is widely used to extract uncertainty estimates from black-box models. However, how LLMs internally generate such scores remains unknown. We address two questions: first, when confidence is computed -- just-in-time when requested, or automatically during answer generation and cached for later retrieval; and second, what verbal confidence represents -- token log-probabilities, or a richer evaluation of answer quality? Focusing on Gemma 3 27B (across TriviaQA, BigMath, and MMLU), Qwen 2.5 7B, and the reasoning model Magistral Small 24B, we provide convergent evidence for cached retrieval. Activation steering, patching, noising, and swap experiments reveal that confidence representations emerge at answer-adjacent positions before appearing at the verbalization site. Attention blocking pinpoints the information flow: confidence is gathered from answer tokens, cached at the first post-answer position, then retrieved for output. Critically, linear probing and variance partitioning reveal that these cached representations explain substantial variance in verbal confidence beyond token log-probabilities, suggesting a richer answer-quality evaluation rather than a simple fluency readout. These findings demonstrate that verbal confidence reflects automatic, sophisticated self-evaluation -- not post-hoc reconstruction -- with implications for understanding metacognition in LLMs and improving calibration.