How can I better understand my friend who has Dementia?

I know someone with a dementia although she carnt remember anything of her daily tasks she always refers back to a time in her life where she talks about a baby or babies. She always mentions a lady too and gives me her name like she knows her. The way she talks is like she has experienced something in her life that knowone knows about, not even her family. Theres nothing in her documents. I get the impression that she may have had a baby that has died because she talks about this in her own way and then says that a girl was laughing about it. She gets very upset. She talks about lots of people within this converstaion and this is something she goes back to alot. She also lays her clothes out on her bed like she will lay a outfit out on her bed as if it is a person because she talks to it. She talks about babys lined up. Girls on one side and boys on another. She mentions girls as if these are the girls that have had the babys. I ask where she workes before and i am told she worked in a shop. She speaks of a doctor and tells me he is lovely. She also comes out of her room like in a rush to tell me its time and that i have to go in asap like someone is in labour. This may sound all confusing but I Want to try and understand her. Some people just dont think to much of it where as I do. If this hadnt really happend then why does she cry the way she does, why isnt any documented. What can I say. I do talk to her and to be honest i could sit there all day and listen to her. I think she must of gone through something but carnt think what. Any help would be much appreciated.