The documentation you linked is mainly for the Change Feed Processor, but the Azure Functions binding actually runs the Change Feed Processor underneath.
When just using CFP, it's maybe easier to understand because you are mainly in control of the instances and distribution, but I'll try to map it to Functions.
The document mentions a deployment unit concept:
A single change feed processor deployment unit consists of one or more instances with the same processorName and lease container configuration. You can have many deployment units where each one has a different business flow for the changes and each deployment unit consisting of one or more instances.
For example, you might have one deployment unit that triggers an external API anytime there is a change in your container. Another deployment unit might move data, in real time, each time there is a change. When a change happens in your monitored container, all your deployment units will get notified.
The deployment unit in Functions is the Function App. One Function App can span many instances. So each instance/host within that Function App deployment, will act as a available host/consumer.
Further down, the article talks about the dynamic scaling and what it says is basically that, within a Deployment Unit (Function App), the leases will get evenly distributed. So if you have 20 leases and 10 Function App instances, then each instance will own 2 leases and process them independently from the other instances.
One important note on that article is, scaling enables a higher CPU pool, but not a necessarily a higher parallelism.
As the documentation mentions, even on a single instance, CFP will process and read each lease it owns on an independent Task. The problem is, all these parallel processing is sharing the same CPU, so adding more instances will help if you currently see the instance having a CPU thread/bottleneck.
Now, in your example, you want to have N Function Apps, I assume that each one, doing something different. Basically, microservice deployments which would trigger on any change, but do a different task or fire a different business flow.
This other article covers that. Basically you can either, have each Function App use a separate Lease collection (having the monitored collection be the same) or you can share the lease collection but use a different LeaseCollectionPrefix for each Function App deployment. If the number of Function Apps you will be shared the lease collection is high, please check the RU usage on the lease collection as you might need to increase it (there is a note about it on the article).