Chanan means to be gracious, show favor, or have mercy. It appears about 80 times. It describes unmerited kindness, especially from a superior to an inferior. The related noun chen (grace) and channun (gracious) are key divine attributes.
God's graciousness is foundational to His covenant character. In Exodus 34:6, God declares Himself gracious. This grace is unearned, flowing from God's character rather than human merit. The Aaronic blessing ('The LORD be gracious to you') invokes this divine attribute.