When used as an adjective the term understanding refers to the ability or practice of being sympathetically aware of other people’s feelings and using that sympathy to be tolerant and forgiving.
As a noun, the word is broadly about comprehension. Being understanding of others does require comprehension of their situation so the adjective usage is consistent.
Empathy and Understanding
The practice of understanding is key to being empathetic. To share how others are feeling and be sympathetic to it, we need to be able to have an understanding of what they are feeling.
Using empathy is key to being able to engage and interact with other people in the most effective way. The key to practicing empathy is not to lose sight of the fact that while it is all about you, being understanding of others actually helps you.
For most of us, living as a hermit is not enjoyable. We need to enjoy interacting with others and being empathetic will help you to do that.
So treating others with understanding is required even for self centred people. It might be all about you but without positive interactions others you probably won’t be happy.
Not Charity
What I am suggesting is basic respect for others. This is not being charitable by assisting those in need or acting favourably toward them.
Understanding others is a bi-directional practice. Your understanding coupled with their understanding leads to healthy and happy relationships. These are enjoyable and after all is that not what we seek.