Step 1. Download the mod you want, usually they come packaged as a rar. file or a similar archived format.
Step 2. Open this rar. (Or zip., 7zip. etc.) and you'll normally see the files, such as folders for Textures, Meshes and an esp. file in most cases.
Step 3. Many people say you need to extract the archived file to a location first, you don't really. If you're viewing the files inside the archive, simply drag the ones you need into your Data directory.
Step 4. Use the Mod Manager or the Data Files option in the laucner to activate the esp. file.
Step 5. Play with your new mod.