It might know it because you told it. If it doesn’t, it needs to find someone else who knows the answer. Simplified to analogy:
If you tell your friend “Deliver this to the third house on the right of this street”, they know where to take it. (This is like an IP address)
If you tell your friend “Deliver this to John’s house” (this is like a Domain Name), it only knows to go to the third house on the right if you’ve already told it that’s where John lives (Domain Name lookup).
If you haven’t told it, then your friend leaves your house, knocks on the next door neighbour’s, and asks “Do you know where John lives?”. It then repeats that process until it finds someone who can tell it the directions (this is using the Domain Name System).
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