Steps to Sanding & Varnishing Wood
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    Varnish is a clear finish that hardens and cures on the surface of wood. By way of contrast,
    penetrating oils don't remain on the surface, and neither lacquer nor shellac cure. You can
    apply varnish to interior or exterior woodwork, and you can apply it to bare wood or to wood
    with a previous varnish finish. Whether the hardening agent is alkyd or polyurethane, varnish
    usually takes about eight hours to dry, and you usually need two or three coats for a complete
    finish. It's possible to spray varnish, but it's easier and just as effective to brush it.
                                                  1
    Apply varnish only to dry wood and work in temperatures above 50 degrees Fahrenheit. If
    you're working outside, do so only on days when no rain is forecast.
                                                  2
    Sand out imperfections in the wood with 100- or 120-grit sandpaper and a palm sander. It isn't
    always necessary to sand the wood -- for example, you leave exterior rough-sawn trim
    unsanded. When you do sand, however, It's best to use the sander for flat surfaces and sand in
    crevices and corners by hand with a folded piece of sandpaper.
                                                  3
Go over the woodwork with 150-grit sandpaper, sanding with the grain of the wood, after the
rough sanding is complete. The finer sandpaper will erase swirls and scratches left by the
sanding machine. Wipe off the sanding dust with a clean rag when you're done.
                                                4
Spread a coat of sanding sealer to interior woodwork with a natural-bristle paintbrush.
Sanding sealer is a shellac-based undercoating that seals the wood so you get more even
coverage with the varnish. It raises the grain, but it's formulated to be easy to sand, so you can
knock the grain back down again with a light sanding and create a smooth substrate for the
finish.
                                                5
Scuff the sanding sealer with 220-grit sandpaper. Because you're sanding the finish, and not the
wood, you can move the paper with or against the grain; some people prefer to use a swirling
motion. Wipe off the sanding dust with a rag.
                                                6
Apply the first coat of varnish with a natural-bristle brush. Brush with the grain of the wood,
using long strokes that begin on dry wood and end on wood you've just varnished. This allows
the strokes to blend together.
                                                7
Move the brush more slowly if the finish starts to bubble. The bubbles come from turbulence in
the finish. Break them with the tip of your paintbrush before they have a chance to harden.
                                                8
Let the varnish dry for at least eight hours and then sand it with 220-grit sandpaper and apply
another coat. Repeat a third time, if necessary.
Credit to source
https://homeguides.sfgate.com/steps-sanding-varnishing-wood-82270.html