SEO or known as search engine optimization is used to optimize web pages or websites to specific keywords or phrases that web page or website wants to be associated with.
Lets look at a website called www.seo-engine-optimization.co.uk as you can see it is already stating in its domain name what the website wants to be associated with which are SEO keywords or phrases.
So far this website has eleven pages and each page has a clean or a friendly url which means keeping your domain name pages simple and to the point such as:
http://www.seo-engine-optimization.co.uk/services/search-engine-optimisation This enables the search engines robots to identify what this page should be associated with. This should also follow through to the description of the page focusing on one topic which is "search engine optimisation"
Also title's meta tags and descriptions come in to play but I will go into that another time.
So over all if you are trying to optimize your website keep each url clean and to the point, and make sure that the content also matches the url's description of the page.