Think about it this way - the total system contains enough water to fill the tank, sump, and the plumbing between them. Water is pumped into the main tank from the sump, overflows into the overflow, and then runs through the U-tube into the outer box from which it drains into the sump.
If the power goes out, the water stops pumping back up into the display. Once it drops below the level of the overflow, it stops flowing into the inner box. U-tube style overflows are designed so that they will stop moving water before the siphon breaks. At this point you have no water moving, and everything just sits still until the power comes back on. Then the pump starts moving water back into the display, which starts overflowing again. This raises the water level in the inner box above the level of the outer box, and the siphon starts moving water. Voila, water flow is restored through the whole "circuit" without any intervention from you.
One thing that's very important is to drill a siphon break in the return line. This is a hole (mine is 1/4" in the return line, right below water level. This lets air into the return if the water level in the main tank drops, and stops it from siphoning the whole tankful of water backwards down into the sump. Without this, you WILL have a flood if the power goes out.
Oh, and test the setup. Turn all the pumps off at the same time and make sure the water level stabilizes without overflowing anywhere. Then you'll be able to be confident that there won't be any flooding.
HTH.