I'm a bit confused, so I looked it up, and I found this:
FILE1=$1
wc $FILE1
this is a bit confusing to me, what does assigning the variable expression operator, followed by the number 1 to FILE1, but FILE1 is just a variable, and we're assigning what? The number 1 to the variable expression operator?
How does this work exactly?
What can I do to better understand this concept?
$1
is the first of the "positional parameters" to a script / program / function, explained in your shell's man page.