They are just constants which map to a number, e.g. SORT_NUMERIC (a constant used by sorting functions) is the integer 1.
Check out the examples for json_encode().
As you can see, each flag is 2n. This way, | can be used to specify multiple flags.
For example, suppose you want to use the flag JSON_FORCE_OBJECT (16 or 00010000) and JSON_PRETTY_PRINT (128 or 10000000).
The bitwise operator OR (|) will turn the bit on if either operand's bit is on...
JSON_FORCE_OBJECT | JSON_PRETTY_PRINT
...is internally....
00010000 | 1000000
...which is...
10010000
You can check it with...
var_dump(base_convert(JSON_PRETTY_PRINT | JSON_FORCE_OBJECT, 10, 2));
// string(8) "10010000"
CodePad.
This is how both flags can be set with bitwise operators.