Then for each digit, you select between the other input multiplied by 0 (all zeros), +1 (identity), +2 (shift left by one bit), or -1 or -2 (flip all the bits of +1 or +2, plus a correction). Since a number has about half as many digits in base 4 as in base 2, you have about half as many digits to sum as if you'd done this in base 2.
Then you sum up all those results, but since carry propagation is expensive, you mostly use "compressors", e.g. you sum up three intermediates at a time, but you do it bit-by-bit, where three 1-bit numbers add up to a 2-bit number (from 0 to 3). This is called a Wallace Tree. The point is that you are generating carries, but you aren't propagating them, just adding them back into the set of things to be summed.
At the end of the tree step, you have just two numbers left, and you add them conventionally. That's the only step that needs full carry propagation.
If you are implementing a multiply-add, or multiplying several numbers and adding up all the results or similar, then you usually only need one full carry propagation stage.
The overall circuit has quadratic area but only a logarithmic depth in gates. IIRC whether to do Booth or not is a tradeoff: at least in some circumstances the rewrite steps make it slower but smaller. Hardware tool vendors have done a lot of work to tune these circuits very tightly, using e.g. specialized gates like AOI, heuristics for how to set up the tree, etc.
That's base 5 then. It needs to go from -2 to +1 if you want base 4
Edited to add: I'm also not sure whether real-life implementations have -0 as an option. Of course -0 could be normalized to +0, but it might be cheaper not to bother if the sign is applied after the digit selection.
If digit i has significance b^i, then b (the base of the exponentiation) is the base (or radix) of the number system.
The page you linked explicitly mentions the binary version of Booth encoding as having base b=2 and three signed digits {-1, 0, 1}. The quaternary version similarly has b=4 and five signed digits {-2, -1, 0, 1, 2} ... and possibly sometimes -0 in practice, not sure.
Even if it isn’t, it still would be a lot cheaper. With 32-bit integers, the lookup table would have 2⁶⁴ 64-bit values. If my math six right, that is 128 exabytes of read-only memory. With 64-but integers, it truly would be impractical, at 2¹²⁸ 128-bit values.