Daves got it right.
A Friend of mine says seal early and seal often.I usually put a sealer of some sort on immediately after putting down the chisel.
Flexner says sanding sealer is usually the first coat of the finish.That is to say what ever you are going to use as a finish can be considered a sealer.
IIRC Russ Fairfields explanation.
Products that are labeled sanding sealers usually have additives to "lubricate" the abrasive being used to diminsh heat build up.
These additives sometimes add a color to the wood or leave behind a residue.
It is imperative that the dust from sanding be removed between grits.
along with the dust there can also be debris from the sandpaper itself.
I normally use compressed air or a little spit on a paper towel.
along with sealing the grain sanding sealer stiffens the fibers of the wood making the job easier for the sand paper.
Yo are "shearing" the fibers off as opposed to "laying" them down flat.
AS I am sanding off the sanding sealer I pay attention to the color of the dust on the paper.
When I get more of the color of what I am sanding(the wood) I apply another coat of sealer as I progress in grits.
When there are no pits pores or voids it is then I start to apply my top coat and subsequent "build" coats.
Even after all this I still get some bleeding of color, but not as often as I used to.