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Tor [network] encrypts data itself? Or does it only Tor Browser Bundle?

For example, if I use an external client to connect to the Tor network and direct all traffic over Tor and use a different browser, such as, Chromium - in this case traffic will be still encrypted?

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If you are using an external client (such as an onion pi) and then connect to the internet over that client, then yes you can use any browser you want and your traffic will be encrypted and sent over Tor. There are some drawbacks in regards to anonymity when doing this that the Tor Browser Bundle takes care of for you.

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