It seems to me that the main thing human reason does in real life is to interpret the significance of things. When we think of something, many implicit judgments about it are brought into scope. In a way, Kant already suggested this with his accounts of synthesis.
In real-world human reasoning, the actually operative identity of the things we reason about is not the trivial formal identity of their names or symbols, but rather a complex one constituted by the implications of all the judgments implicitly associated with the things in question. (See also Identity, Isomorphism; Aristotelian Identity.)
This is why people sometimes seem to talk past one another. The same words commonly imply different judgments for different people, so it is to be expected that this leads to different reasoning. That is why Plato recommended dialogue, and why Aristotle devoted so much attention to sorting out different ways in which things are “said”. (See also Aristotelian Semantics.)
I think human reason uses complex material inference (reasoning based on intermediate meaning content rather than syntax) to evaluate meanings and situations in an implicit way that usually ends up looking like simple summary judgment at a conscious level, but is actually far more involved. A great deal goes on, very rapidly and below the level of our awareness. Every surface-level judgment or assertion implicitly depends on many interpretations.
Ever since Aristotle took the first steps toward formalization of logic, people have tended to think of real-world human reasoning in terms modeled straightforwardly on formal or semi-formal logical operations, with meanings of terms either abstracted away or taken for granted. (Aristotle himself did not make this mistake, as noted above.) This fails to take into account the vast amount of implicit interpretive work that gets encapsulated into ordinary terms, by means of their classification into what are effectively types, capturing everything that implicitly may be relevantly said about the things in question in the context of our current unity of apperception.
A typed term for a thing works as shorthand for many judgments about the thing. Conversely, classification and consequent effective identity of the thing depend on those judgments.
As a result of active deliberation, we often refine our preconscious interpretations of things, and sometimes replace them altogether. Deliberation and dialectic are the testing ground of interpretations.
In general, interpretation is an open-ended task. It seems to me that it also involves something like what Kant called free play. (See also Hermeneutics; Theory and Practice; Philosophy; Ethical Reason; The Autonomy of Reason; Foundations?; Aristotelian Demonstration; Brandom on Truth.)