She probably does understand about self harming in general, but asked you to tell her about self harming so she can understand why and when you are likely to harm yourself.
If she understands what self harm stands for and means to you then she is better able to help you, it may not mean she doesnt understand self harm fullstop.
My therapist asked me this question because now he knows what is going on for me when i cut and why i act this way. Perhaps if you dont know why you self harm she is going to work with you to gain some insight? As for saying she doesnt mind if you cut etc is good because she can obviously see that it is a beneficial coping mechanism at this time in your life.
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