How does conscious sedation work?

Pretty well: Conscious sedation makes uncomfortable minor procedures more tolerable. Medication such as narcotics or sedatives are given in amounts large enough to lower your level of awareness but small enough to avoid suppressing your ability to breath or gag. Many tests and surgical procedures can be done under conscious sedation thus avoiding general anesthesia.

Technically...OK?: Agents used (e.g., bezodiazepines) produce the following effects: reduced anxiety, skeletal muscle relaxation and amnesia (antegrade). They allow for a relaxed, memory-free surgical experience while preserving wakefulness and one's ability to respond verbally to prompts. They enhance the affinity of specific "receptors" in the nervous system to respond to an inhibitory neurotransmitter.