You put one probe of the meter on one end of the circuit that you want to check and the other probe on the other end of that circuit.
The meter is set on DC volts.
If there is undue resistance in the circuit, the current will take the easy route thru the meter and you will see a small voltage on the meter indicating how much took the short cut. Normally, say from the back of the alternator to the battery should be close to 0.1v. On our cars, with the idiotic routing of the factory wiring, it might me a bit more because there are no many connections involved.
This also works on the ground side of the circuits as well. For instance, one probe on a clean spot of the firewall to the negative terminal on the battery should give a very small voltage on the meter...if it is more than 0.1-0.2 v, then you have a bad ground somewhere...
Key has to be on and I prefer the engine running to put a little load on the circuits.