How all-site reading works
Host access alone lets extension APIs query matching URLs. Reading and changing page content requires injection, often through content scripts declared in the manifest or the scripting API.
The extension can then access the page DOM, observe input and read cookies that are not HttpOnly. It can also combine page context with tab, history or storage data depending on other permissions.
Related pages:what does all_urls meancontent script matches
Why legitimate extensions need it
Password managers, ad blockers, translation tools, accessibility helpers and developer utilities often need broad access to recognize or modify pages across sites. The access can be justified even though the privacy impact is large.
The key questions are whether the feature truly needs every site, whether the publisher explains data handling and whether the extension sends page content to external hosts.
Related pages:is this extension safeexternal domain finder
Limiting exposure
Use the browser's site-access control to restrict an installed extension where possible. Remove extensions that are no longer needed. Prefer alternatives that name the sites they need.
If you must use a broad extension for sensitive accounts, consider a separate browser profile with a smaller extension set.