File Vault questions

I'm just getting to grips with how this works. Few questions:

 - Is it possible to change the password I set for my file vault?

 - What exactly is the file vault? Is it a "hidden partition" on the hard drive? Or is it just an ordinary encrypted file with password protection?

- If I want to remove my file vault, do I just delete it? Or are there some extra steps I need to take?

I understand that once the file vault is often, is works like any other mounted disk. Does this mean I can set permissions and back-ups the same way as for any other disk and/or file, once the vault is open?


My intention is to store my sensitive documents in the vault, and set up an automatic backup to some secure online cloud service, and to a hardware encrypted thumb drive that I would plug into my laptop every now and then. I'm still figuring out how to do this.