How does a TLB and data cache work?

Question

I'm trying to study for an exam and I realized I'm confused about how the TLB and data cache work.

I understand that the TLB is essentially a cache of most recently used physical addresses. However, I was looking at a diagram in my textbook (shown below), and I don't understand what's going on in it. It suddenly splits up the physical address and uses it to index the cache, I guess. But why is it showing the cache and data separately? and why is the byte offset just left floating? I'm pretty sure the cache is supposed to store data as well. I don't think its sole purpose is to determine whether or not there's a hit or miss inside of it.

I apologize for my ignorance in advance, but the book barely covers TLB's (it's like a little more than a page) and it doesn't do a very good job at explaining the relationship between a TLB and cache.