Hi Marek,
it’s never a daft question if you don’t know, better to ask and then be informed than guess the answer and make a fool of yourself.
Graphic laminates come in two forms, liquid or solid for want of a better description. Liquid is self explanatory, comes in a can and can be brushed, rollered, sprayed, screen printed or if you have the cash, can be applied by a liquid laminating machine. The print is fed through these and a controlled thickness of laminate is applied and dried.
Solid laminates come on rolls usually and can be hand applied or by a roll laminator machine. These are pressure sensitive, either cold applied or heat activated.
So what do they do? Well they offer a degree of resistance to damage by abrasion, some have UV inhibitors to prevent the print being degraded by sunlight or are simply used to add a decorative finish to the print.
They are applied to the printed side of the graphic as you say but paper prints can also be encapsulated, were a layer of heat activated laminate is applied to either side of the print.
I hope this helps answer some of your question.
All the best,
John.