Long division in school was mostly about guessing — "does 7 go into 23 how many times?" takes trial and error. Binary division skips the guessing entirely, because a divisor can only ever fit zero or one times at each step. That "guess" is just the comparison you learned in Chapter 5.
Binary long division works exactly like the decimal version you already know, one bit at a time:
Every "subtract" in step 3 is the two's-complement trick from Chapter 5, and every "compare" is really just attempting that subtraction and checking whether the result would have gone negative. There is no dedicated division circuit either — it's subtraction, wearing a trench coat.
That's all four operations. Add, subtract, multiply, divide — every one of them boils down to the same handful of switches, wired into gates, wired into adders, run over and over. Next: see how a real computer scales this exact same trick up to billions of switches.