A Sitecore developer should have the most intense and deepest understanding of Sitecore in general. Developers need to understand the CMS user's perspective (i.e. content editor's POV), they need to understand the architecture of content within the content tree, and they need to know the code, which they build. A developer should have the most intimate knowledge of a Sitecore solution because you need to know the architecture to know how to code. And to know the architecture means you know how content editors will interact with the content.
Architecture
Sitecore is a souped up database. Think of it like that. You can architecture a site how you want. But once you start to learn the principles of Sitecore architecture and best practices you'll notice a pattern. Everything in the content tree is an item. The model for each item (called a template in Sitecore terms) is defined by an architect (which is often often a developer). In fact, even if there's a separate person for the architect role, they likely have developer knowledge as architecture defines the way things are developed. In fact, the architecture is one of the most important things.
Code
Code is broken down into various types, but in its simplest form there are two main things: layouts and sublayouts.
Think of a layout as what a normal a ASP.NET application uses a MasterPage for. In Sitecore, a layout is actually a ASPX WebForm, but it acts as a master page. Some examples of layouts you could have on your site are: One Column Layout, Two Column Layout, Print Layout. These would respectively translate to a header and footer with one main content area, a header and footer with a main column and side bar, and a print-optimized layout with maybe a logo and just main content.
Sublayouts are all of the little components that make up a page. Examples include: main navigation, a promo box in your side bar, a list of 5 recent news pieces, a CTA for a promotion, a sidebar slide show, etc. These components could be modular and moved around by content editors, or they can be fixed within the location of layouts, e.g. a promo box could always appear in the sidebar of the Two Column layout as a business rule defined in the code.
To answer your question about is there actual coding, yes. You write code using ASP.NET controls for Sitecore and Sitecore's C# API to access data that is populated into the templates on each item. So, if you had an item for a page that had a page title for the title tag, your code would use the Sitecore API to access the field "Title Tag" from the template (remember a template in Sitecore speak is a data model) in Sitecore.
Coding For Sitecore
I'd say there are two approaches to coding. I believe you identified one of them, which is using the internal tools within Sitecore's interface. Sitecore has a section called Developer Center that lets you create layouts and sublayouts. Frankly, compare this to using Visual Studio in Design Mode all of the time. I have never once used the Developer Center to do my coding. Instead, I code in Visual Studio which is the most common technique for people to code for Sitecore (at least I think it is). Now if you're wondering, how does the coding connect to Sitecore's data... well the answer is within Sitecore. There's a section of the tree called Layouts. In here are the names of your layouts and sublayouts. Each layout and sublayout item has a path that maps to either a ASPX WebForm or ASCX User Control, respectively. This is how the code on the file system that you write in Visual Studio actually gets used by Sitecore. These layout and sublayout items are then used via the Presentation > Details tabs for each item in Sitecore.
Beginners
One of the hardest things with Sitecore is the learning curve. I've been using Sitecore for years now and love it. In fact, its all I really do. It's by far my favorite CMS as its completely customizable and very developer-friendly. Sitecore recommends that new developers take the developer training classes so they can basically explain what I explained above in an actual training curriculum. In this training you will learn the architecture, and then how the code connects to it. Training involves hand-on architecture work within the content tree and hands-on coding. The recommend training courses for new developers are: