Octal is base 8. It uses only the digits 0 through 7 — there is no 8 and no 9, because in base 8 the value eight is written 10, exactly as ten is written 10 in decimal. Each place is worth eight times the one to its right: 1, 8, 64, 512, and so on.
Octal exists because 8 is 2 cubed, which means one octal digit corresponds to exactly three binary digits. That made it valuable in early computing, when machine word sizes were often multiples of three bits. Modern machines settled on 8-bit bytes, which divide evenly into hexadecimal's 4-bit digits but not into octal's 3-bit ones, and hex largely displaced octal as a result. Octal survives mainly in Unix file permissions and a handful of legacy formats.
Converting from decimal is the awkward direction. Ten is not a power of eight, so unlike binary-to-octal — which is pure regrouping — decimal-to-octal requires real arithmetic: repeated division for whole numbers, repeated multiplication for fractions.