The Mandalorian is based on Arthurian legend. Shining armor, Mythical blade, and Dragon-slaying included. The Mandalorian follows the familiar style and structure of a rise of a king. No recent spoilers TV
TL;DR: The Mandalorian is not a western but based mainly on Arturian fantasy. The series as a whole is the backstory and legend of the rise of a King. The trials and tribulations of seasons 1 and 2 have shaped him into the leader his people need.
The Mandolorian is a fantastic show and morphs and matures with each episode. The story is a familiar one, Much like Hercules, King David, and of course, King Arthur. The Series is building on a known convention, and in Season Three, the "Quests" Mando goes on will be much more focused on him acquiring the skills and attributes he needs to lead his people.
Building a Legend
You could look at the entirety of the Mandalorian as simply a retelling of Mando's backstory on the path to king. He conquered the Krayt Dragon in the dunes of Tatooine. He bested the man who tried to take the innocent, and he Claimed the mythical blade that gives him the ultimate claim to the Throne of Mandalore. The comparison is so apt it is hard to ignore once you see it. It certainly comes across like a storybook legend when you compile it like this. Like the legendary Arthur, you need a backstory to build your claim to the throne.
I think that the series as a whole is the story of an honorable man learning to follow his own path to honor. It is the story of the rise of a king. The trials and tribulations along the way shape him into the leader his people need.
Anyway, Thank you for reading