Clicking there displays any new notifications, along with the option to mark all as read (1 below), to go to the notifications preferences page (2) to change how notifications are received, and (3) to view all notifications.

Clicking 'View full notification' displays the notification in a full list, whereas clicking the main body of the notification will take us to the location in Moodle that the event happened, as in this example, to the assignment grading screen.

Receiving notifications

See also