My English skills are poor. Which of these is correct to say?
"I can't understand what does it mean"
"I can't understand what it means".
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"I can't understand what it means" is an indirect question. You need to use a direct word order, like in a statement, after what/when/where/if/etc.
"Can you tell me where the bank is?"
"I was wondering how you did that. "
If you really want to use your first example, you need to separate it into two distinct sentences: "I can't understand. What does it mean?"