I would suggest reading the threads and posts about SEO instead of posting and asking how it works. SEO is too complicated a subject. You would be better off reading about it in the threads and posting relevant questions rather than create such a thread.
Here is something to read through if you want to get started learning about search engine optimization. http://www.websitepublisher.net/seo-guide/
here is a tips for new seo beginners sonicko.com/search-engine-optimization/top-50-seo-tips-and-tricks-for-beginners/
Umm... SEO is Search-Engine optimization it's basically where your articles are all rich in keywords that have to do with your anchor link (that's the text that shows on your hyperlink) make sure your articles are unique, keyword friendly, well-placed tags, and easily-accessible for spiders & bots and you'll be fine