It is widely credited to Aristotle, but the sentence has not been found in any of his surviving works. The idea behind it is much older: “Know thyself” was inscribed at the temple of Apollo at Delphi, and Plato has Socrates discuss it in the Phaedrus and the Protagoras.
What it means
Before you can judge the world well, you need to understand yourself — your motives, your blind spots, your habits of mind. Wisdom starts with that honest look inward.
Where it comes from
The line appears on quote sites and posters credited to Aristotle, usually without a book or page. It does not appear in Aristotle's surviving works as far as we can find. Wikiquote's “Wisdom” page tags it “Nicomachean Ethics” without a book or chapter, but the sentence is not in the Ethics, and it is not among the sayings on Wikiquote's own Aristotle page.
The thought itself has a real ancient source. “Know thyself” (gnōthi seauton) was one of the maxims inscribed at Apollo's temple at Delphi. In Plato's Protagoras (343b) Socrates names it alongside “Nothing overmuch”, and in the Phaedrus (229e) he says he is not yet able, “as the Delphic inscription has it, to know myself”.