The narrator feels excited when they see a school and children they haven't seen for a few years, now growing up.
We infer that they think the village, school, and their return are good.
What if they had felt afraid? Or bored? Or angry? Then we'd infer the narrator thought these were bad in some way.
The emotions don't give us all the details about a narrator's opinion, but they give us a sense of whether the narrator wants to move towards or away from something.
(For more about this, see the lesson on Emotional cause & effect.)