A car knows its speed by counting how fast its wheels turn. An aircraft has nothing to count. All it can do is feel the air pushing against it, and that push depends on two things: how fast you are going, and how thick the air is.
Dynamic pressure grows with the square of speed. Double the speed and the push is four times as strong. Slide from 40 to 80 kt above and watch the dynamic pressure readout: it does not double, it quadruples.
Indicated is not true
The dial is calibrated for sea-level air in the ISA. Climb, and each cubic metre holds fewer molecules. To feel the same push, you must fly faster through it. The number on the dial, indicated airspeed, stays the same. Your real speed through the air, true airspeed, grows.
Pilots shortcut this with the 2% rule: add 2% to IAS for every 1,000 ft. Try it in the figure. It is very good below 10,000 ft, which is where you will use it, and drifts at airliner heights, where compressibility also starts to matter.
There is a good reason the dial shows IAS and not TAS, though. The wing feels the air exactly as the airspeed indicator does. It stalls at the same indicated airspeed whether you are at sea level or at 8,000 ft. One number on the dial, valid everywhere.
Reading the arcs
That is also why the important limits are painted straight onto the dial. They are all indicated airspeeds, so they never move.