[TYPO3] Newbie question

[jasper22]

Hi

  I'm very new to TYPO and trying to understand how it's works :)

While searching the list for date-time help I found a topic with typo 
script:

temp.lc_date = CONTENT
temp.lc_date {
    table = tt_content
    select {
       orderBy = tstamp DESC
       max = 1
    }
    renderObj = TEXT
    renderObj {
       field = tstamp
       date = d.m.y - H:i
    }
}

Can someone explain how it's work?
I mean - I understand that:
1) I create some temporary variable temp.lc_date
2) I set this variable to CONTENT object type
3) Inside variable 'table' is set to tt_content
4) I'm running 'select' command on tt_content with warious parametrs 
(how does it know that it should run on 'table' ??)
5) Create another variable 'renderObj' and set it to TEXT type
6) 'renderObj' will select only 'tstamp' field from previous 'table' and 
receive value 'date' from 'tstamp' column (is that right ?)

How those variables working with each other ? How 'select' is running on 
'table' and 'renderObj' working on result table ?