What is your understanding of the election of grace?

My understanding is that God has chosen everybody to be saved, however, only a few, in comparison to all of humanity from creation to the 2nd Coming of Christ, will be saved.

There could be no such thing as one not prepared for heaven entering heaven. There is no such thing as a human being sanctified and fitted for the heavenly kingdom not having an election to that kingdom. God elects those who have been working on the plan of addition. The explanation is given in the first chapter of Second Peter. For every human being, Christ has paid the election price. No one need be lost. All have been redeemed. To those who receive Christ as a personal Saviour will be given power to become the sons and daughters of God. An eternal life insurance policy has been provided for all. {7BC 944.2}

There is the election of God on the condition of practice, and there is no other election in the Bible. Election is within our reach. "If ye do these things, ye shall never fall" (MS 49, 1894). {7BC 944.4}

It depends upon your course of action as to whether or not you will secure the benefits bestowed upon those who, as the elect of God, receive an eternal life-insurance policy (MS 81, 1900). {7BC 944.6}

The Father sets His love upon His elect people who live in the midst of men. These are the people whom Christ has redeemed by the price of His own blood; and because they respond to the drawing of Christ, through the sovereign mercy of God, they are elected to be saved as His obedient children. Upon them is manifested the free grace of God, the love wherewith He hath loved them. Everyone who will humble himself as a little child, who will receive and obey the Word of God with a child's simplicity, will be among the elect of God. . . . {6BC 1114.3}

In the council of heaven, provision was made that men, though transgressors, should not perish in their disobedience, but, through faith in Christ as their substitute and surety, might become the elect of God, predestinated unto the adoption of children by Jesus Christ to Himself according to the good pleasure of His will. God wills that all men should be saved; for ample provision has been made, in giving His only-begotten Son to pay man's ransom. Those who perish will perish because they refuse to be adopted as children of God through Christ Jesus (ST Jan. 2, 1893). {6BC 1114.5}

[2Pe_1:2-10 quoted.] Here is the condition of the only saving election in the Word of God. We are to become partakers of the divine nature, having escaped the corruption that is in the world through lust. We are to add grace to grace, and the promise is, "If ye do these things, ye shall never fall: for so an entrance shall be ministered unto you abundantly into the everlasting kingdom of our Lord and Saviour Jesus Christ." {6BC 1114.7}

The title, The Election of Grace, is an interesting title.

What is your understanding of the election of grace?

My understanding is that God has chosen everybody to be saved, however, only a few, in comparison to all of humanity from creation to the 2nd Coming of Christ, will be saved.

My understanding is a little different. The grace is for all, but the elect are those who accept this grace. God has chosen, not individuals, but a class of people to be saved - those who accept His grace, those who accept Christ as their Savior, or, in EW's words, those who "have a character in harmony with His law."
OTOH, God didn't elect anyone to be lost, but if you do not fulfill the conditions of the election for salvation, you will automatically be lost.