Despite the name, Google Type isn’t a real Google product. The site generates fonts based on Google image search, hence the name. You type in words, the site digs through image search and regenerates your text using image versions of each letter.
This is all based on an interesting quirk of Google’s image search. If you type in a single letter and search images, Google gives you a lovely collection of image representations for that letter. For example, plug in “Y,” and you may see the “Y” from “Yahoo,” an illustration of a guy with his arms up in a “Y” shape, and a hand making the hang-loose sign. Any of these could pop up in Google Type.