As above.
The extra lump on top between the leaves is an expansion of the normal stem (pseudobulb) tissue between the leaves. Multi-leaf orchids such as Dendrobiums have segments of pseudobulb between leaves. Unifoliate Cattleyas seem not to do so - but read on. Some Cattleya alliance genera, like Epidendrum and allies, and Cattlianthe, also have multiple leaves with intervening pseudobulb segments. As PaphMadMan mentioned, hybrids of these occasionally revert to type.
Sympodial pseudobulbs can be regarded as short growth shoots that terminate and stop growing. Most plant shoots have leaves, or structures analogous to leaves, all along the shoots. In Cattleya tribe orchids (and other sympodial orchids) new shoots are enclosed in tight protective sheaths, which dry up as the growth matures. These develop during growth in exactly the same manner as do leaves.
Most plants have a new growth point, called a meristem, at the base of each leaf or sheath. This can form flowers or a new growth. In most Cattleya alliance plants, flowers come from the apex of the pseudobulb, and new growths from the lowest part of the stem. But some Cattleyas flower from the base.
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