Could any one give me some good flow in diagram of how lat, long information from a csv file is changed into a point in cartoDB. I am assuming it is being done with the help of SQL queries, but still is there any architectural diagram of the data flow in cartoDB?
If you have LAT and LON as decimal degrees (WGS84 / EPSG:4326) in your CSV, CartoDB should automatically recognize those values when you upload your table.
If your data is another coordinate system, you might have to project your data to WGS84 first, then export to CSV, THEN upload to CartoDB.
As mapBaker says, CartoDB will recognize your coordinates directly only if your columns are named "latitude", "longitude", "lat", "long", "lon"...
Remember that latitude and longitude needs to be included into different columns. If in your information both are together, perhaps this FAQ is useful for you: http://docs.cartodb.com/faqs.html#why-isnt-my-single-latlong-column-appearing-as-georeferenced-data