The Big Idea Geometrically:
Suppose we measure our distance from a satellite and find it to be 11,000 miles. Knowing that we're 11,000 miles from a particular satellite narrows down all the possible locations we could be in the whole universe to the surface of a sphere that is centered on this satellite and has a radius of 11,000 miles. Next, say we measure our distance to a second satellite and find out that it's 12,000 miles away. That tells us that we're not only on the first sphere but we're also on a sphere that's 12,000 miles from the second satellite. Or in other words, we're somewhere on the circle where these two spheres intersect.
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If we then make a measurement from a third satellite and find that we're 13,000 miles from that one, that narrows our position down even further, to the two points where the 13,000 mile sphere cuts through the circle that's the intersection of the first two spheres. So by ranging from three satellites we can narrow our position to just two points in space. To decide which one is our true location we could make a fourth measurement. But usually one of the two points is a ridiculous answer (either too far from Earth or moving at an impossible velocity) and can be rejected without a measurement. A fourth measurement does come in very handy for another reason however, but we'll tell you about that later. Next we'll see how the system measures distances to satellites.
The Big Idea Mathematically
In a sense, the whole thing boils down to those "velocity times travel time" math problems we did in high school. Remember the old: "If a car goes 60 miles per hour for two hours, how far does it travel?"
Velocity (60 mph) x Time (2 hours) = Distance (120 miles)
In the case of GPS we're measuring a radio signal so the velocity is going to be the speed of light or roughly 186,000 miles per second. The problem is measuring the travel time.