The basis for almost all of computational science revolves around solving equations (differential equations) on computers. To do this task, the most fundamental concept is in taking continuous objects and actions and finding discrete representations of them (like 1, 2, 3, 4, 5 as individual points instead of a solid line from 1 to 5). Without going into any detail at all, the two main objects and actions that need to be discretized to solve these equations are the grid (x-axis, y-axis, etc, the line or plane or surface on which you are solving the problem) and the derivative operator (think of a function cos(n*cos^-1(x)) for n points x between x = 0 and x = 1, in equal steps of .1, so 0, .1, .2, .3, ... , 1 (n=10) would be your x-axis and you have a value of cos(n*cos^-1(x))at every point) which the derivative operator then acts on your function at every individual point.
At the lowest level, the way you do this is like I described above, equally-spaced points and since you are APPROXIMATING (key word) continuous objects as discrete, there is inherent error in your calculation. I have told you that there is a function cos(n*cos^-1(x)), but lets say you have cos(5*cos^-1(x)) (I'm picking this example because it was a HW problem for me like 4 years ago and I still have my plots and pdf on dropbox so it's easier to explain lmao), if you don't take enough points (higher n) it becomes impossible to distinguish from cos(25*cos^-1(x)), as you see below.
One way to get around the error is to take higher n, but that is more computationally expensive. It's essentially the same type of thing as upping your graphics quality, stuff gets smoother but you will hit a point where your PC cant keep up. Another way is AMR where you say okay I have a square grid and I'm solving a function over all of it, but maybe I don't care what happens in the lower left 8x8 set of squares, maybe shit just isn't interesting there. So you can break that 8x8 square up instead of small points like 1x1 as your smallest unit, say 4 blocks of 4x4. You get way less specific information about what is going on over there, but you don't care so who gives a shit. Maybe you REALLY need to know what is happening in the upper right 2x2 block. Like that is representing the place of highest stress on an airplane wing or something. So you want REALLY high detail, so you break it up into .001 x .001 blocks and get very accurate solutions over the area. And you do similar things for other areas of the square, so you have it blocked off not unlike Hobo's pictures above.
So how does this fit in with what you were thinking? Well at the end of the day, the theory of refining the structures is good and all, but you need an equation to write as a code before anything happens. So you look at your square and you break it up into 8 differently sized representative blocks each with their own internal block size, and write out an 8 term equation representing all of them, great, good job. But your boss comes by and says "I don't like 8, do 10" so you do it all again and do 10, but then you are on a conference call with your Chinese partners and 10 means like death or something in chinese so they want lucky numbers that look mean cat in chinese or some shit so they want 13 blocks. (This is a highly exaggerated example of shit that does actually happen). The moral is you need to go to something like what Blubb wrote, and what you picked up on initially - generalization. You could find an expression involving x-2 and x-1 instead of x-1 and x, you could find one involving x-3 and x, etc etc to your heart's desire.