[fny]

They're stored in an sqlite file at ~/Library/Containers/com.apple.Notes/Data/Library/Notes/NotesV7.storedata (version number might be different.)

The data stored all over the place in the DB.

For example, you can extract HTML body of a note with the following query: "select ZHTMLSTRING from ZNOTEBODY".

[kitsunesoba]

Yep. They probably use Core Data (which is a layer on top of SQLite) internally instead of straight SQLite, but either way it ends up on disk as an SQLite file. A lot of standard Apple apps do this.