As a 10K user, I can approve/disapprove edits by low-reputation users. BUT: Why am I being asked to approve edits done by Community ♦ ... Presumably, despite having only reputation 1, it can put in whatever edits it wants?
3 Answers
Community owns the edits of anonymous users, but it does not approve them.
What Community does approve is when people choose to improve an edit rather than approving it. In this case Community approves it automatically and the improving user can apply the edit.
Completely anonymous users can also submit edits.
Go to a random SE site which you are not registered for nor used before, say http://photo.stackexchange.com You have the option of "improving this question" when you open a question. As a completely anonymous user (not just an unregistered one) your suggestions will be thrown into the review queue as performed by "Community".
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$\begingroup$ It is also mentioned on the profile page of Community: "Own suggested edits from anonymous users". See also this question at meta.SO. $\endgroup$ Nov 28, 2012 at 15:55
Community isn't really a single entity -- it is just a placeholder name that the software will display in contexts where a user name is needed or expected but there's no real named user to blame.
So wondering about what "it" can do if it "wants" to is besides the point. There's no "it", just a lot of disjoint pieces of the SE software that all do whatever they were programmed to do directly in the database and then fill in the username field of the records of their activity with "Community ♦" because they have nothing better to put there.