Is there a way to sort the backlog by priority?
Change the board filter to include "order by priority".
This will disable ranking, so you need to think before you do it (there's an essay question somewhere on community about this), but if it's useful, you should do it, do some refinement, then swap the filter back to rank and re-evaluate them.
What exactly is "ranking"?
https://confluence.atlassian.com/jirasoftwarecloud/ranking-an-issue-777002780.html
So this seems to just be the default behavior where issues are dragged and dropped in the order of importance. Is that correct?
Yes, that's what the backlog is for
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