Some extremely noob questions.

Full disclosure, I know essentially nothing about SEO.

Whichever keywords you choose, is the basic idea of SEO to include the keywords as much as you can in your website? Do they have to be verbatim? Let's say I choose: "Electrician services near me" as one of my keywords. Am I expected to shoehorn that sentence somewhere in my website? Seems a little weird and borderline grammatically incorrect to provide a service but state "near me." By asking that question alone I'm sure I'm just completely not understanding the concept of SEO.

Can someone give me, or provide me a source of an extremely practical explanation of implementing SEO? I find a lot of literature about the importance of SEO, but little to none about how to actually do it. Please explain it to me like I'm 5.