In spite of the fact that there are probably thousands of web sites on penile anatomy, I always return to this one by Boston University Medical Center because it has the most detailed explanation of the anatomy of the penis.
If you scroll down to the paragraph that begins "The substance of the corpora cavernosa…" you’ll find this [with my comments]:
"The substance of the corpora cavernosa (erectile tissue) consists of numerous sinusoids (lacunar spaces) among interwoven trabeculae of smooth muscles and supporting connective tissue. The corpora cavernosa sinusoids are widely communicative and larger in the center of the corpora, having a Swiss-cheese appearance. This fact enables the blood within the penis to transfer easily from the top to the bottom of the corpora. [Or bottom to top, as in jelqing.] This also enable the penis to have a common intracavernosal pressure and a common penile rigidity. The sinusoids are smaller in the periphery and have a grape-like appearance. Peripheral sinusoids have a greater individual surface area than central sinusoids. These characteristics aid in the passive process of corporal veno-occlusion by sub-tunical venule compression against the tunica albuginea. [as the penis fills with blood during erection, the small veins under the tunia get compressed and stop outflow of blood, thus helping to maintain the erection] All lacunar spaces are lined with endothelial cells, thought previously to have only a slippery surface preventing blood clotting. Recent research has revealed that endothelial cells have secretory function and synthesize factors involved in the regulation of corporal smooth muscle tone."
So, the sinusoids (spongy tissue) are made of smooth muscle and connective tissue (what Likeness79 said) and are like Swiss cheese in that they are open to each other, especially in the center of each corpus cavernosum (CC), which allows blood to freely fill and move within the CC.