What we do know: neurons carry electrical impulses across their synapses to trigger other neurons to fire, and more frequently used synapses are strengthened while infrequently used ones are pruned. This is not all that dissimilar to how a multi-layer perceptron is trained: it's floating point numbers in a big matrix rather than biological structures and electrical impulses, but there is still that element of frequently used connections being strengthened and infrequently used ones being pruned.
What we hypothesize but do not know: there is a thin brain structure of grey matter called the claustrum that has tendrils that reach into nearly every other brain structure. In many ways, this is similar to the attention mechanism of the transformer architecture. It is hypothesized that this may be the seat of consciousness, owing to experiments where electrical stimulation of the claustrum caused patients to immediately lose consciousness. However, there is no way to prove this, owing to the difficulty of otherwise removing or disabling the most connected structure in the brain and observing its effect on consciousness without permanently killing the patient.
Beyond that, we don't know much. I've got a family friend that's been a practicing therapist for 50 years, and I asked him what was the most interesting observation he made in his career. It was that "Everybody experiences the world in a different way, and yet everybody assumes that everyone else experiences the world the same way they do."