When you encrypt a volume using KMS encryption, the data is encrypted when it's "at rest". This means, the data is encrypted when it's sitting on the EBS volume hardware. Not when you're accessing it from an EC2 instance. When you read blocks from the EBS volume, the EC2/EBS system will automatically decrypt the data and present it to you unencrypted.
The data is encrypted at the block level, not at the file-system level. By the time your Linux/Windows EC2 instance "sees" the blocks, the data has already been decrypted.
Important: You will never see the data in it's encrypted form.
KMS encrypting an EBS volume is not hiding data from other people who access your EC2 instance.
KMS encrypting an EBS volume is not hiding data when the volume is attached to another EC2 instance.
KMS encrypting an EBS volume does hide data from someone who gains access to the EBS volume hardware directly.
KMS encrypting an EBS volume does hide data if the person starting the EC2 instance does not have access to the KMS key. In this case, the EC2 instance will not start.
Once the EC2 instance is started and running, anyone with access to the EC2 instance will have access to the EBS volume. And the data will never appear encrypted to you.