Color blind people report "seeing" colors their eyes cannot create - during really vivid dreams for example. I guess you could take that to mean something stimulated the visual cortex to produce the color sensation.
There are color receptors - cone cells - in the retina. The area in the brain where the signals are processed into images, the visual cortex, is where "sight" lives, so to speak. This area of the brain is plastic.
Baseler, H.A., Bewer, A.A., Sharpe, L.T., Morland, A.B., Jagle, H. and Wandell, B.A. (2002). Reorganization of human cortical maps caused by inherited photoreceptor abnormalities. Nat. Neurosci. 5, 364-370
'rod monochromats' are fully color blind, and have no cone cells. These are the cells that perceive color.
What Baseler et al.[5] discovered was that the area of cortex that receives information only from the central part of the retina -- the foveola -- in normal color vision is activated by the rod system in rod monochromats. Because there are no rods in the foveola in either these or normal individuals, this central activation developed from a reorganization of the primary visual cortex. This was due to their altered visual experience.
In other words the brain learned to deal with a new non-color data input set using areas of the brain that were not really meant for "black and white" processing.
As to understanding color when you have not seen it, this sounds more like Philosophy maybe. How do we know that what our brain tells us is out there is real?
And only a percentage of people who are blind perceive no light whatsoever. Many blind people can see colors, they just cannot see well enough to get around well visually.