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Automation basically remembers your adjustments to the signal. If done correctly you can be very creative with it. Not only can you adjust volume- which is what a lot of people use it for, but you can also adjust how the signal is panned, how much effects should be placed and even when a signal should be muted or soloed. It takes a lot of practice in order to get good at using automation properly, so make sure you put in the reps.
We have a database of sessions that you can use to practise on. If you're interested, click on the button below and you can download a few sessions for practising. Our only terms is that you use the files for practice purposes and not for your own creative licencing.