IPSec VPN can be broken into two main phases:
Phase 1 - aka IKE settings in ASDM
Phase 1 is used to agree upon how the two VPN devices will negotiate all other communication between each other.
Phase 2 - aka IPSec settings in ASDM
Phase 2 is used to secure the actual traffic going through the VPN.
Phase 1 is used to determine how your peer (your ASA firewall) talks securely to the remote peer (the Peer IP in the connection profile.) Phase 1 includes these main components:
Peer - the IP of their VPN peer (something you are)
PSK - the preshared key or cert (something you have/know)
IKE policy - the encryption and authentication settings to secure the phase 1 communication - such as AES256 encryption and SHA authentication
IKE Mode - aggressive or main, basically how much effort goes into in initial handshakes. Not correct exactly but the general idea.
Phase 2 is used to actually build the SA’s (security associations) to say you are going to protect traffic from your networks to their networks. The main settings here are:
Local encryption network/domain - the networks on your side that will talk to the other side
Remote encryption network/domain - the networks on the other side that will talk to your side
IPSec proposal - the encryption and authentication settings to secure the actual traffic - such as AES256 encryption and SHA authentication
Other settings such as lifetimes (amount of time or data before re-securing the VPN,) perfect forward secrecy/PFS, NAT-T are just options that need to match, they just add to how the VPN negotiates or allow the VPN to operate in slightly different ways (like through NATs which normally break VPNs) There’s other nomenclature such as ISAKMP and a bunch of other acronyms - p1 and p2 basics are 95% of what all VPNs are composed of.
You can’t have Phase 2 come up without Phase 1 already being up. You can also have multiple Phase 2 SA’s, each network to network combination will basically establish a new SA pair.