We always talk with our pets, too. When I had Chipper, he understood everything I said and most things that I was thinking. Dogs can understand a lot more words than we give them credit for, mostly. It is like having a small child, the more time you spend talking to them, the more they learn.
When we first got Poodle, he didn’t know his name, and he didn’t even seem to understand that dogs have names. But before I could decide on a new name for him, he was listening to me, and he started looking when he heard me say the word “Poodle” and knew that it meant I was talking about him.
Since he understood that , I didn’t want to give him another name and make him learn all over again, so his name continues to be Poodle, but now he has a much larger vocabulary of words that he understands.
Words like “out, bedtime, bologna, chicken, and pizza” seems to be some of his favorites, but if he hears Poodle and bath in the same sentence, he will go and hide in his condo.
I think that sometimes he even tries to speak , because he says something that sounds like “oow-wuuo” when he wants to go outside, and he makes that same vocalization pretty frequently when he wants to go outside.