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Dofollow/Nofollow backlinks

Could someone explain to me in layman's terms how a Search Engine would know if you're using dofollow backlinks inappropriately?

I'm struggling to understand why one wouldn't always use dofollow links (unless they really actively didn't want to have a positive SEO influence on whatever they're linking, in which case why would you even link them in the first place?).

I'm understanding there is more to it, but i'm struggling to grasp what that is and how a search engine puts you in their good or bad books.

Hope that makes sense and thanks in advance!

submitted by /u/Negative-Parfait-423
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