It is not just the thermostat adjustment knob that is outside the freezer. It is the whole thermostat excluding that part of the capillary tubing that is inside the freezer and attached to the evaporator coil. As in the accompanying photo you see the knob on the outside but the thermostat is mounted right on the other side of the shell in the motor compartment of the freezer. Then the small capillary tubing runs inside the freezer to the coil. The tubing is hermetically sealed and filled with a liquid that rapidly expands when heated and shrinks when cooled. When the freezer warms up the expanding pressure pushes against a diaphragm inside the thermostat that pushes a switch that turns on the compressor. Likewise, when the tubing gets cold enough the lower pressure allows the switch to open, turning off the compressor.
In the photo of the thermostat you can see that the capillary tubing is connected to a metal plate on the thermostat that is attached on the outside of the cooling section of the freezer. In very low temperatures such as when the freezer is in an unheated garage, this plate gets very cold transferring the cold to the capillary tubing thus lowering the pressure and cutting off the compressor regardless of how cold or how warm the inside of the freezer is and this shuts off the compressor.
The compressor will remain off for as long as the temperature in the garage is low enough and the food inside the insulated freezer will thaw. When the weather warms up the freezer will start working again and refreeze the food but the food will be rotten by then and unsafe to eat. If you have not noticed that the freezer was off and eat some of the food you could wind up with food poisoning. This is why many people put a cup of water in the freezer till it freezes and then put a quarter on top of the ice in the cup. If the freezer defrosts then the quarter will fall to the bottom of the cup and remain there if the water re-freezes. When you see the coin on the bottom of the cup, you will know that your food defrosted and is unsafe to eat