We know a lot of facts, and we have some ideas about how various small things are implemented, but in terms of grand unifying theories, we’re nowhere close.
For example, suppose I showed you two gratings (think zebra stripes): a small patch and a larger one. Under some circumstances, you’ll have a harder time determining which way the big patch is oriented vs. the small one. This is true even though there’s extra information in the big patch. We think this is related to a phenomena called surround suppression, but they’re not exactly the same....and no one can agree on how surround suppression is implemented, let alone what it’s good for. This happens in primary visual cortex, which is probably the simplest—-and most extensively studied—of the visual cortical areas.