That's probably the worst diagram on the planet for trying to visualize the first isomorphism theorem for vector spaces.
Instead, think about ordinary 3-dimensional Euclidean space $\mathbb{R}^3$. The subspaces are: the origin (zero), lines through the origin, planes through the origin, and the whole space.
A linear map $L:\mathbb{R}^3\to\mathbb{R}^3$ always "kills off" a subspace (i.e. maps a subspace to the origin), which is called the kernel. Whatever it doesn't kill off is in the image subspace. For example, projection onto the $xy$-plane kills off the $z$-axis.
Taking a quotient by a subspace kills off that subspace. For example if $U$ is the $z$-axis, then $\mathbb{R}^3/U$ is (isomorphic to) the $xy$-plane.
This should hopefully help you understand the theorem.