No longer a newbie, moving up!
Almost. JPEG lets you edit 256 levels of each colour, making 16 million colours in all. That's as many as your eye/brain can distinguish.
Most RAW formats let you edit 4096 levels of each colour. What's the point, when your eye can't distinguish the difference? Well, if you over- or underexposed, those extra levels are there to give you a better chance of getting out a good image to view/print at the end of the process.