Explain conditional formatting formula

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Hello,

Is someone able to fully explain how the formula

=AND(start_of_range<>"", NOT(ISERROR(MATCH(start_of_range,list_name,0))))
works please for conditional formatting. It works like a charm but no idea how it fully works. how can each individual cell that this conditional formatting act independently from each other when only the top left cell if referred to?
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Wednesday November 28, 2018
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December 9, 2018
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Thank you
Hi,

If your cell contains text, you follow the formula described on this link. You can also check this formula.

Please revert in case of any query! 

Thanks 
Respond to Ratnendra Ashok