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The default setting is a behind-the-car perspective and is indicated by the very bottom arrow. The arrow pointing up with the circle around it is the first person view and the dot with the arrow pointing into it is a zoomed out top-down view.
In the Stig levels you race against Stig in layouts that are similar to the Precision tracks. You must avoid hitting cones as these will cause you to lose 5 seconds from your current time and crashing into obstacles will end your attempt. If you manage to reach checkpoints fast enough you will be rewarded with time boosts.
To successfully complete the Destruction levels you need to hit ALL the destructible objects found on the track so your progress bar is at 100% before you reach the end of the track.
To successfully complete the the Precision levels in the allotted amount of time to earn stars you need to pass a set number of checkpoints and park at a designated location. This is best accomplished using slow speeds so you are able to navigate the obstacles without touching them as doing so results in failure.