Google ranks websites (relevancy aside for a moment) by the number and quality of incoming links to a site from other websites (amongst hundreds of other metrics). Generally speaking, a link from a page to another page is viewed in Google “eyes” as a vote for that page the link points to. The more votes a page gets, the more trusted a page can become, and the higher Google will rank it – in theory. Rankings are HUGELY affected by how much Google ultimately trusts the DOMAIN the page is on. BACKLINKS (links from other websites – trump every other signal.)
I’ve got by, by thinking external links to other sites should probably be on single pages deeper in your site architecture, with the pages receiving all your Google Juice once it’s been “soaked up” by the higher pages in your site structure (the home page, your category pages). This tactic is old school but I still follow it. I don’t need to think you need to worry about that, too much, in 2020.
The SEO starter guide describes much of what your SEO will do for you. Although you don't need to know this guide well yourself if you're hiring a professional to do the work for you, it is useful to be familiar with these techniques, so that you can be aware if an SEO wants to use a technique that is not recommended or, worse, strongly discouraged.