How computers work? Updated +Created
A computer is a highly layered system, and so you have to decide which layers you are the most interested in studying.
Although the layer are somewhat independent, they also sometimes interact, and when that happens it usually hurts your brain. E.g., if compilers were perfect, no one optimizing software would have to know anything about microarchitecture. But if you want to go hardcore enough, you might have to learn some lower layer.
It must also be said that like in any industry, certain layers are hidden in commercial secrecy mysteries making it harder to actually learn them. In computing, the lower level you go, the more closed source things tend to become.
But as you climb down into the abyss of low level hardcoreness, don't forget that making usefulness is more important than being hardcore: Figure 1. "xkcd 378: Real Programmers".
First, the most important thing you should know about this subject: cirosantilli.com/linux-kernel-module-cheat/should-you-waste-your-life-with-systems-programming
Here's a summary from low-level to high-level:
Figure 1.
xkcd 378: Real Programmers
. Source.
Video 1.
How low can you go video by Ciro Santilli (2017)
Source. In this infamous video Ciro has summarized the computer hierarchy.
Integrated circuit Updated +Created
It is quite amazing to read through books such as The Supermen: The Story of Seymour Cray by Charles J. Murray (1997), as it makes you notice that earlier CPUs (all before the 70's) were not made with integrated circuits, but rather smaller pieces glued up on PCBs! E.g. the arithmetic logic unit was actually a discrete component at one point.
The reason for this can also be understood quite clearly by reading books such as Robert Noyce: The Man Behind the Microchip by Leslie Berlin (2006). The first integrated circuits were just too small for this. It was initially unimaginable that a CPU would fit in a single chip! Even just having a very small number of components on a chip was already revolutionary and enough to kick-start the industry. Just imagine how much money any level of integration saved in those early days for production, e.g. as opposed to manually soldering point-to-point constructions. Also the reliability, size an weight gains were amazing. In particular for military and spacial applications originally.