This phrase is casual and used more in spoken than written English, often in familiar or informal situations. Ask Jerry about car engines, he knows them backwards.
Pro Tip 2/3
Expert Knowledge
The phrase suggests a deep, thorough understanding, usually from experience or long-term involvement. She can fix any bug; she knows the code backwards.
Pro Tip 3/3
Not Literal
It's a figurative expression, meaning there is no actual 'backwards' knowledge involved. You won't stump him on history questions; he knows it backwards.