The Microsoft Documentation at https://learn.microsoft.com/en-us/sql/t-sql/data-types/bit-transact-sql?view=sql-server-2017 says:
An integer data type that can take a value of 1, 0, or NULL.
The SQL Server Database Engine optimizes storage of bit columns. If there are 8 or fewer bit columns in a table, the columns are stored as 1 byte. If there are from 9 up to 16 bit columns, the columns are stored as 2 bytes, and so on. The string values TRUE and FALSE can be converted to bit values: TRUE is converted to 1 and FALSE is converted to 0. Converting to bit promotes any nonzero value to 1.
How is it possible to store 1, 0 and NULL in a single bit?