Servos are clever devices. Using just one input pin, they receive the position from the Arduino and they go there. Internally, they have a motor driver and a feedback circuit that makes sure that the servo arm reaches the desired position. But what kind of signal do they receive on the input pin?
It is a square wave similar to PWM. Each cycle in the signal lasts for 20 milliseconds and for most of the time, the value is LOW. At the beginning of each cycle, the signal is HIGH for a time between 1 and 2 milliseconds. At 1 millisecond it represents 0 degrees and at 2 milliseconds it represents 180 degrees. In between, it represents the value from 0–180. This is a very good and reliable method. The graphic makes it a little easier to understand.
Remember that using the Servo library automatically disables PWM functionality on PWM pins 9 and 10 on the Arduino UNO and similar boards.