It installs directly from the recovery partition once its completely downloaded.
You can also perform the install, don't boot to it but boot to the recovery partition again, image the newly installed drive to a spare hard drive and keep that image as a backup. Next time you need to re-install, boot to the recovery partition, write the backed up image to the partition you want and then you have fresh install in a few minutes instead of a few hours. I actually did this with Lion, Mountain Lion and even Snow Leopard.
You can also perform the install, don't boot to it but boot to the recovery partition again, image the newly installed drive to a spare hard drive and keep that image as a backup. Next time you need to re-install, boot to the recovery partition, write the backed up image to the partition you want and then you have fresh install in a few minutes instead of a few hours. I actually did this with Lion, Mountain Lion and even Snow Leopard.