In my opinion, iterative approach means that you're trying to solve a problem by breaking your steps into a lot of small steps, and gather feedback after each step to see if you're on the right track. If you're not on the right track, you can change your direction and try again.
Here you can see the iterative approach taken by Boston Dynamics to build their robots:
By compounding the results of each iteration, and gathering feedback as fast as possible, iterative approach makes it possible to achieve good results when we're facing a wick problem.
Judging Other People's Work
Understanding iteration and iterative process and detecting it in other people's work can be helpful when we're judging their work. For example, when we're observing early works of an artist, understanding that they're going through an iterative process can help us to be more forgiving and understanding of their work.