While our sensory receptors are constantly collecting information from the environment, it is ultimately how we interpret that information that affects how we interact with the world. Perception refers to the way sensory information is organized, interpreted, and consciously experienced. Perception involves both bottom-up and top-down processing.
Bottom-up processing refers to the fact that perceptions are built from sensory input. On the other hand, how we interpret those sensations is influenced by our available knowledge, our experiences, and our thoughts. This is called top-down processing.