Okay, so I tested it out as best I could.
Only the changed parts of the .ddb seem to be uploaded. By that I mean that if you make changes to only one note, the entire file isn't uploaded. The one minor thing I noticed that I'll have to watch for is that when I note is modified, everything in that note seems to be uploaded again not just the changed parts.
I tested this by adding an image to a note and monitoring the amount of data sent by Dropbox. The amount of data sent was a little less than the increase in .ddb size, I think because Dropbox compresses the data before sending. I then changed other notes that contained only text, and the data sent was extremely small. When I added text to the note with the image in it, the data sent was about the same as when I added the entire image.
This should work quite well for me, since I rarely include images, or anything more than text in AllMyNotes.
I hope this helps anyone else that is curious about how this all works together.