One uses a plotting table and an overlay on a chart (map of ocean and coast) to draw a vector representing the ship's speed and course (or direction), and the vectors of wind speed and direction, and current speed and direction. Adding them graphically gives the resultant vector or actual course and speed down that track.
In reverse, one can plot the desired course, and then graphically add or subtract from it for wind and current, giving the course that must be steered to maintain the desired course. A one hour time for wind and current is used, and the course vector is for one hour (that is, if the course can be held that long without running into trouble).
The new GPS screens and computers take care of all that now, but crew are still required to know how in case of a power failure or GPS signal loss.