discerning competence: the trained ability to tell things apart and put that judgment to work
At its root this word is about telling things apart. It comes from the same family as the little word for "between," and that idea never quite leaves it: to have understanding is to sort the good from the bad, the true from the false, the workable plan from the foolish one. So it is not raw information, and it is not a feeling. It is a settled mental skill that sizes up a situation and acts well in it.
Because that skill shows up in many arenas, the same word covers a wide range. It is the sharp judgment a wise person brings to daily life and the good sense a fool lacks. It is the practical know-how in a craftsman's hands. And, lifted to the highest scale, it is the master competence by which God designed and built the world. The senses below differ only by where this one capacity is at work, not by what it is.
What ties the uses together is that understanding here always aims at something. It distinguishes in order to decide, plan, make, or order. That is why the same word fits the skilled metalworker, the discerning student, and the Creator who stretched out the heavens: each is the same competence applied to a different task. English splits it into several words (understanding, insight, discernment, skill), but the Hebrew keeps it whole.