Grafana is a web application you point at one or more data sources to build dashboards. A dashboard is a grid of panels, and each panel runs a query against a data source and draws the result as a time-series graph, a gauge, a heatmap, a table, or a single stat. You build panels through a query editor and arrange them with drag and drop, then save the dashboard as JSON.
The key thing to understand is that Grafana stores almost nothing about your metrics. It keeps its own configuration (dashboards, users, alert rules, data source connections) in a small relational database, usually SQLite for single-node setups or Postgres and MySQL for production. The actual metrics and logs live in whatever backend you connected: Prometheus for metrics, Loki for logs, Tempo or Jaeger for traces, Elasticsearch, InfluxDB, CloudWatch, and dozens more.
This separation is why one Grafana instance can show CPU usage from Prometheus, application logs from Loki, and billing data from a Postgres database all on the same screen. Grafana is the glass, not the warehouse.