Disperson relation
Before even looking at the Schrödinger eqaution let's look at the wave equation to understand an important concept in physics: the dispersion relation. The wave equation (1D) is given by
$$\frac{1}{c^2}\frac{\partial^2u}{\partial t^2}-\frac{\partial^2u}{\partial x^2}=0.$$
One way to find solutions of this equation is to go to Fourier space. This means that I look at $u$ as a function of frequency, instead of space or time. In Fourier space, taking the derivative of a function becomes multiplication by frequency. I define the Fourier transform as
\begin{align}
u(t, x)=\frac{1}{(2\pi)^2}\int\mathrm dk\,\mathrm d\omega\,\hat u(\omega,k)e^{i kx}e^{i\omega t}.
\end{align}
Here $k$ is called the angular wavenumber and $\omega$ the angular frequency. They are related to wavelength and frequency by
\begin{align}
k=\frac{2\pi}{\lambda}\\
\omega=2\pi f
\end{align}
If we now plug this into the wave equation, we get after some work,
\begin{align}
\frac{1}{(2\pi)^2}\int\mathrm dk\,\mathrm d\omega\,\left[-\frac{\omega^2}{c^2}+k^2\right]\hat u(\omega,k)e^{i kx}e^{i\omega t}=0.
\end{align}
This must hold true for all functions $\hat u$, so for each point $(\omega,k)$ either $\hat u=0$ or $\omega^2=c^2k^2$. This means that all non-zero values of $\hat u$ occur along the two lines $\omega=\pm ck$. The function $\omega^2=c^2k^2$ is called the dispersion relation. For valid solutions of the wave equation, it relates frequency to wavelength.
The Schrödinger equation
(I do not know a lot about the history, so excuse me if I butcher this section and please correct me if necessary)
In the early 1900's, Einstein and Planck postulated that light came in discrete packets, called photons. This explained the long standing mystery of the ultraviolet catastrophe, as well as the photo-electric effect. The energy of each photon is related to its frequency, by the simple relation
$$E=hf.$$
Sometime later, De Broglie postulated that matter was made out of waves. He did this to explain the discrete nature of absorption spectra of atoms. He used the following relation for momentum:
$$p=\frac{h}{\lambda}$$
Now, if matter is made out of waves, surely there must be some equation that describes the evolution of this wave. Schrödinger was the first to find a satisfactory one. Let's pretend we are Schrödinger and "derive" this equation.
According to classical physics, matter has the following expression for energy (Hamiltonian)
$$E=\frac{p^2}{2m}+U(x)$$
Now, let's use $E=hf$ and $p=h/\lambda$. I first write them as $E=\hbar \omega$ and $p=\hbar k$.
$$\hbar \omega=\frac{\hbar^2 k^2}{2m}+\hat U(k)$$
I replaced $U(x)\mapsto \hat U(k)$. This will become clear soon. We want to derive a wave-like equation, so let's interpret this equation as a dispersion relation and work in reverse.
\begin{align}
\frac{1}{(2\pi)^2}\int\mathrm dk\,\mathrm d\omega\,\left[
\hbar\omega - \frac{\hbar^2 k^2}{2m}-\hat U(k)
\right]\hat \psi(\omega,k)e^{i kx}e^{i\omega t}&=0\\
\left[
i\hbar\frac{\partial}{\partial t}+ \frac{\hbar^2 }{2m}\frac{\partial^2}{\partial x^2}-U(x)
\right]\frac{1}{(2\pi)^2}\int\mathrm dk\,\mathrm d\omega\,\hat \psi(\omega,k)e^{i kx}e^{i\omega t}&=0\\
\left[
i\hbar\frac{\partial}{\partial t}+ \frac{\hbar^2 }{2m}\frac{\partial^2}{\partial x^2}-U(x)
\right]\psi(x)&=0
\end{align}
and finally we have "derived" the Schrödinger equation. This derivation is much easier when you know how the final answer looks, so don't underestimate how hard this was to find back in the days.
What does $\hat p=-i\frac{\partial}{\partial x}$ mean?
So far, identifying derivatives with $p$ has just been a tool to get the right dispersion relation, but how do we interpret this? For a plane wave this is easy to interpret. For a plane wave $e^{ikx/\hbar}$ we recognize the momentum $p=\hbar k$. The momentum operator acts like $\hat p{e^{ikx/\hbar}}=(\hbar k){e^{ikx/\hbar}}=p{e^{ikx/\hbar}}$. In other words, it multiplies by the momentum. The new function $\hat p\psi(x) $ is in itself meaningless, the same way that $x\psi(x)$ is meaningless. But, since the Schrödinger equation is linear, superpositions of solutions are also solutions to the Schrödinger equation. So we can interpret a superposition of two plane waves with definite momentum as having "two momenta at the same time". In other words,
$$|\psi\rangle=c_1|p_1\rangle+c_2|p_2\rangle,$$
respresents a state that has both $p_1$ as momentum and $p_2$ as momentum. By the Born rule, we say that the average momentum is $|c_1|^2p_1+|c_2|^2p_2$. We can calculate this using $\langle\psi|\hat p|\psi\rangle$. When $\hat p$ acts on $|\psi\rangle$, it multiplies every eigenstate with its momentum. The multiplication by $\langle \psi|$ then turns that expression into an expectation value.
The fact that $\langle\psi|\hat p|\psi\rangle$ is the expectation value of $p$ relies on two facts
- $\hat p$ multiplies each state $|p_i\rangle$ with $p_i$
- The states $|p_i\rangle$ form an orthonormal basis. This means that
$$\langle \psi_i|\psi_j\rangle=\cases{1&i=j\\0&i$\neq j$}$$
It turns out that both these conditions are fulfilled if $\hat p$ is Hermitian, which implies $\hat p^\dagger=\hat p$. This also guarantees real eigenvalues, so the expectation value is real. This means that we can interpret every Hermitian operator as an observable.
Finally
Generally speaking, $\hat O\psi(x)$ for an observable $\hat O$ does not have a nice interpretation, that's just not now how quantum mechanics works. What we can say though, is that the eigenstates of $\hat O$ represent all possible states of $\hat O$, the eigenvalues of $\hat O$ represent all possible values of $\hat O$ and $\psi|\hat O|\psi\rangle$ represents the expected outcome of a measurement of $\hat O$.
Reference: https://www.mpiwg-berlin.mpg.de/Preprints/P437.PDF