The use of IQ is fundamentally to create complex baseband waveforms which can then be subsequently translated to an RF signal as a real passband signal and through a single antenna. This can be used to send QAM modulation as the OP is inferring, but IQ does not necessitate QAM.
"CW" for radar refers to "Continuous Wave" where the transmit signal is always on, in contrast to pulse radar where the transmit signal is turned on and off during the radar operation. “CW” can refer to modulated or unmodulated radars (see https://en.m.wikipedia.org/wiki/Continuous-wave_radar ), where the modulated case is required to resolve range. A very common modulated CW radar implementation is "FMCW" where the transmit frequency is ramped (chirped). Qasim Chaudhari wrote a nice series of blog articles recently with more details about FMCW specifically. Qasim is also lined up to make an interesting presentation on FMCW at the 2024 DSP Online Conference coming up at the end of October. Also see my related posts here regarding resolving range and Doppler with FMCW radar:
Range-Doppler Coupling in FMCW
https://dsp.stackexchange.com/a/82571/21048
By using "I" and "Q" referring to the in-phase and quadrature components of a complex baseband signal, we're able to create waveforms where the upper and lower sidebands of a passband transmitted signal are completely independent of each other. With a complex baseband signal, the spectrum that is centered on DC (f=0) will exactly represent the spectrum as it will be centered on any other carrier frequency. With that we can implement FMCW at baseband by starting with a negative frequency and ramping that through DC to a positive frequency.
To get an intuition for this, see the following spectrums below for the Fourier transform of a real sinusoid, vs the transforms for complex exponentials representing a single negative frequency tone or a single positive frequency tone:
If we were to upconvert the real sinusoid to a higher RF carrier frequency, we would see each of the tones shown as two sidebands on that carrier. (Double Sideband Suppressed Carrier specifically). However upconverting either of the other two cases (using a complex baseband signal) would result in a single tone at RF either slightly higher or slightly lower than the carrier frequency. We therefore would have full control of that single tone, including ramping it for the FMCW application.
We note how Euler's formula represents this desired complex signal into it's I and Q components for implementation:
$$e^{j\omega t} = \cos(\omega t) + j\sin(\omega t) = I + jQ$$
That is the significance of "I" and "Q" and nothing to do here with QAM.
The "upconvert to a higher RF carrier frequency" functionally proceeds as follows in many different variants that all have this same result:
Multiply the complex baseband IQ with a complex Local Oscillator and select the real part:
$$(I_b + jQ_b)(I_{LO} - jQ_{LO}) = I_bI_{LO} + Q_bQ_{LO} + j(I_{LO}Q_b - I_bQ_{LO})$$
If we select the real part of this we get the desired RF output as:
$$I_bI_{LO} + Q_bQ_{LO}$$
Why and how this works is further detailed in DSP.SE# 31355.
Please see this related post on how to generate FM signals from IQ:
https://dsp.stackexchange.com/a/73460/21048