performance implications of having 10.000 items

I need to know the performance implications of having 10.000 items in a SharePoint list, and having a view that displays 100 items per page, and then to page through these 10.000 items each time I click on "next" to go to the next page of the view. Will SharePoint query all of the 10.000 items regardless of the item limit set on the view, or will it query 100 items only each time?