Similar to visual memory, your child will build up memories of object sounds and voices. For example, you recognize the sounds of your family or even your own car starting. You may be able to differentiate the difference between a metal and ceramic bowl when someone is stirring.
As your child develops a larger memory base of sounds, he or she will be able to associate distance with sound. They may be able to tell how far away a car is and which direction it is traveling.
Resources:
https://www.griffinot.com/sensory-processing-hearing-sense/
Living Sensationally by Dr. Winnie Dunn