This research explores the numeracy skills and conceptual understanding of students regarding Linear Equations in Two Variables (LETV). Employing a descriptive qualitative method, the study involved 30 Class VIII-C students at 1 Kasihan State Junior High School. Data were collected through a validated test featuring five essay questions designed to measure four indicators: variable identification, equation construction, value determination, and contextual decision-making Results indicate that 60% of students possess high ability, 33.33% medium ability, and 6.66% low ability. While students excelled in identifying variables (80% "very good") and making qualitative conclusions (56.66% "very good"), significant challenges emerged in formulating precise algebraic models and relational thinking. Medium and low-ability students frequently exhibited misconceptions, such as treating variables as literal object labels rather than generalized numbers. The study concludes that while basic numeracy is strong, a gap exists in structural understanding. Consequently, it is suggested that mathematics instruction shift from procedural rote learning toward strengthening "structural sense" through diverse contextual modeling to help students transition from symbolic identification to complex relational formulation across all ability levels