When you are running the fan on low speed, you are moving less air across the evaporator. Lees air means less heat exchanged and less refrigerant vapor generated in the evaporator. The compressor is a PD device (positive displacement) and will move the same volume of refrigerant with each stroke or cycle. The mass flow is lower but the specific volume changes so that there is sufficient volume of refrigerant for the compressor. This causes the temperature in the evaporator to drop and approach freezing. Once the evaporator coil is at freezing or lower, ice will start to form on the coil.
When operating properly an air conditioning unit should not have ice or frost on the evaporator. If you are getting frost or ice, something is not right and the first thing to check is low air flow.
Ken