Incomplete dominance occurs when the heterozygous genotype has an intermediate phenotype in relation to the phenotypes of two parental homozygotes.
As every gene is transcribed in RNA (and this will be used as a template in translation for a protein to be produced), in the case of incomplete dominance, during translation, one allele generally produces a functional protein, while the other produces a non-functional protein . As a consequence, the intermediate phenotype is generated as a mixture of one and the other.