I was not very familiar with how current loop signaling works either but here is what I have figured out. Pretty interesting circuit and somewhat confusing at first. A little background is in order (I learned some from the app note)
Because the current level is what determines the logic level, the voltage level on the loop is unimportant. That is the 7 to 36V supply you see. The transmitter circuit, like in this schematic and typical of loop signalling, gets power from this variable supply. This schematic shows a voltage regulator which generates 5V from the variable 7 to 36V and uses the 5V to power the DAC and the opamp.
I attached a simplified schematic to better show what's happening. Firstly what is called PCB ground is not actually 0V relative to the loop supply ground. PCB ground will vary and be above loop supply ground (earth ground).
The opamp configuration is a classic voltage-to-current converter. The negative terminal will be driven to equal whatever voltage is on the positive terminal. You can see that the negative terminal=PCB ground. If the op amp is working correctly, the voltage across R3 will equal the voltage across RS.
If the DAC outputs 0V (relative to PCB ground) there will be 5V across R2, generating 5uA. That 5uA causes 394mV across R3 and because of regulation also causes 394mV across RS and 3.94mA to flow through RS. So when the DAC signal is 0V, the loop receives 3.945mA of current .
If the DAC outputs 5V, both R1 and R2 conduct current, which is 5uA + 25uA. Same principle applies and approximately 20.9mA curent flows to the loop.
Can you see how the PCB ground rises and falls to whatever voltage is needed to force the loop current?
The reason 4mA is chosen for zero logic instead of 0mA is because if you can still pass current around the loop even during a zero logic state, you can always power the transmitter from the loop supply voltage (so long as the transmitter, DAC and regulator does not require more than 4mA)
**broken link removed**