Not very well. They don't like being switched rapidly on and off. It will blow the little transformer. DC controllers for these is a much better option. Welcome to ACL . Check out the 101 manual. Heaps of info in there..
Welcome to ACL.
Putting a transformer on the output of an AC controller is a pretty good way to damage the transformer and/or the output of the LOR board. You can use a large transformer on the input side of the AC board and dim the 24VAC or 36VAC safely. DC boards is the best option really though.
If you really need to put a transformer on the output of a LOR AC board then you should just use on and off (0%, 100%) rather than dimming.
Welcome to ACL, lots of help and info here. As far as LOR and transformers then the guys in the previous posts have already said it. Best option is to use a large transformer or sequence in a way that doesnt have dimming and quick on and offs.