For example, `Option<i32>` is probably (the compiler gets to choose) going to be represented as two four-byte values: the discriminant, which distinguishes the `Some` and `None` cases, and then a space for the value `v`, for when the discriminant says we have `Some(v)`. Since zero is a perfectly fine value for an `i32`, we have to store the discriminant separately.
But note that this is just a flat eight-byte value. There's no heap allocation involved. It's just as if you'd written in C:
struct O { enum { Some, None } discriminant; int32_t value };
I compiled a program that uses `Option<Option<i32>>`, and looked at the DWARF debugging info to see what the compiler did with it. It seems to represent this as a twelve-byte value: four bytes for the discriminant for the outer `Option`, followed an eight-byte `Option<i32>` value laid out as before. Since you can get the address of a value held by an enum, I guess this makes sense; the compiler can't combine the discriminants or do anything clever like that.Option<i32> could have discriminant values 0 or 1, and Option<Option<i32>> could use discriminant value 2 for None, and 0 or 1 mean the object's an Option<i32>.
Edited to add: With your proposed encoding, the memory contents of an Option<Option<i32>> is identical to an Option<i32> precisely when there is an Option<i32> to speak about. And when there is no Option<i32>, you can tell that with one comparison, rather than by backing out an unknown number of levels. I like it.
Without collapsing that indirection, Option<Option<T>> is perfectly expressible:
It's true that some languages expose "nullable references" as a distinct type and not a detail of representation, and it's true (... and sometimes obnoxious) that this doesn't layer as nicely (in particular, it's not a functor).