Someone please explain scaling

I'm unsure how it works. Is there any way to test how gear is scaling without entering BGs/Arenas?

Would a 20 using a level 10 piece of gear gain more stats than a 29 using that level 10 piece? In other words, is there double dipping?

If that's the case, I foresee blizzard nerfing the scaling to be a max of 10 item levels of scaling. It gives zero incentive to update gear while leveling.
 

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