Understanding knows more than the mere perception since this can just classify as 'blue' or 'round'... Only Understanding can dig out and penetrate into abstract characteristics of the object such as: Impermanent, Miserable and Impersonal... While perception is like a child, and thinking is like a villager, then Understanding is like an Expert, who knows far beyond both the childish perception and the naive villager-like logical thinking... Penetration into the particular individual essence significant for only that special object is the characteristic of Understanding! To eliminate the darkness of delusion & doubt by illuminating the object, as if from all sides, is the function of Understanding! Certainty, assured knowing, beyond all doubt, fully comprehending without deluded confusion is the manifestation of Understanding! The proximate cause of Understanding is Concentration, since only that quality can anchor consciousness long enough on the object so that analytical thinking can drill into it & penetrate into the core! When the object is experienced as if from inside, it is Understood! Understanding is always accompanied by clear Joy or Equanimity! Understanding prevents disadvantageous states from arising and eliminates all these detrimental states, if already arisen & present! Understanding initiates the arising of absent advantageous states, & refines, expands & perfects these good states if already arisen!
There is Understanding gained by Hearing & Learning from another. There is Understanding earned by Thinking and Rational Reasoning. There is Understanding won by Development through Meditation.
Who Knows? There is NOT an 'I, Me, or Person' who understands! Rather the Event of Understanding occurs exactly when the Ability of Understanding is in the State of Understanding... It is therefore Understanding itself!, that Knows, Comprehends and Understands...