The . is a relative path identifier. It means "here". ".." means the parent directory. In certain versions of *nix, "..." means the grandparent directory although this is rare these days.
Any command you wish to run that is not in a directory explicitly listed in your PATH setting must have its location identified. That means you can use an absolute path - /blah/blah/command - or a relative path, which will vary according to where you are.
Knowing your directory structure is crucial to efficient use of a command shell. The advent of the GUI has made people scared of command lines but the Unix command line is far more powerful than any GUI. Through combining commands and chaining the outputs, all manner of wonderful things can be achieved that would be utterly impossible in a GUI without writing an explicit app to do each one.