The histogram shows you the distribution of tones from pure black to pure white. In a black a white, this is just density- i.e. how much of the shot is in shadow, mid-tone, and highlight. In color histograms you've got three overlapping that show the distributions of red, green, and blue along this dark-to-light continuum.
You can use the histogram to gauge exposure because it tells you how much of your shot is dark, middle, or light. If it's all dark then you underexposed, if it's all light then you overexposed, etc.