She's at the point where she understands more than we think. Ask her where Lucy is, and she'll walk over and give her a hug. Ask her to give you a hug, and there's a good chance a hug is on the way.
What does this mean? It means we're officially on notice. Things we do, or say, are now going to get programmed into her little brain. And replicated. I once remember seeing a bumper sticker that said: "Be the person your dog thinks you are." The person who wrote that most likely thought of be the person your one year old thinks you are. But was afraid. It feels like an enormous amount of pressure to be the person she thinks we are now.
But then, it's something we can't ignore. Now, don't get me wrong here. I don't plan to be neurotic about my behavior. That's not the goal here. But, by taking note of the fact that she's watching and mimicking us, makes us aware of the impact we're going to have on our lives. And that's a big enough deal to comment on.