The factor label method is used to convert units from one form to another by using conversion factors. It involves identifying the given and desired units, finding the appropriate conversion factor ratio, arranging the factors so that like units cancel out, and then multiplying the numerators and dividing by the denominators. Examples are provided to demonstrate converting between time, distance, and rate units like hours to seconds, miles to inches, and miles per hour to feet per second. Memorizing metric prefix conversions is also important for using this method between metric units.