In CDLA technology, the headset itself has an integrated audio processing chip and a decoder, which does not allow any sound quality loss. The loss usually occurs in traditional 3.5mm headphones and earphones, irrespective of whether you are using a phone or a laptop. In a 3.5mm jack-based system, the decoder is built into the smartphone and there is no separate power going into the headphone or earphone in itself, which means there is no way it can boost the audio quality to prevent quality loss.
CDLA also supports hi-fi (high-fidelity audio) which is used for high quality audio reproduction, which includes file formats such as FLAC. This means the headset can reproduce the variations in sound in a better manner.