This is incredibly interesting, and something I wouldn't have thought much of before becoming a parent.
Since our son was able to speak, he was able to vocalize when we were near a family member's house (I saw this weekly as we drove from the San Francisco Peninsula up into the city). I was always curious what triggered him to know "we're nearby". We passed several unique structures (overpasses, apartment buildings, signs) but I was incredibly curious which ones he associated with being nearby this particular relative.
Eventually when he was a little older, and we asked, he was able to say a specific color building "told him" he was close. Super interesting. Child development and understanding in itself is so amazing to watch.