Whenever I see it being talked about, it sounds like one simply 'turns on' SSL and then all requests/responses to/from an online server are magically secure.
Is that right? Is SSL just about code - can I write two apps and make them communicate via SSL, or do you have to somehow register/certificate them externally?
Yes and no. You should self-sign a certificate and test the site with SSL internally before deploying it with SSL, first of all. To make the public site secure under SSL, you will need to purchase a certificate from one of any number of certificate providers. Then you will have a certificate signed by a trusted third party, tied to your domain name, so that users' browsers won't complain that the certificate is invalid, etc. Turning SSL on is pretty much just flipping a switch, otherwise.
For the most part you need to buy and register a certificate externally.
How about just checking Wikipedia on the subject? There's a "How it works" chapter.
http://en.wikipedia.org/wiki/Transport%5FLayer%5FSecurity
You need to have your server certificate signed by a Certificate Authority (CA), for which they will charge you. The client needs to trust that CA and have a copy of the relevant CA public key. The client can then check that you are who you claim to be (including domain name (from DNS) and display name for https).
This is a good tutorial on how to create self signed certificates for Apache.
If you want to know how SSL works on either the Server or the Client, then I suggest Googling it. As you suspected, it is a ridiculesly complex procedure, with lots of communication between the client and server, a lot of very peculiar math, and tons of processing. There is also a lot of theory involved, several protocols and many different algorithms and encryption standards. It's quite incredible how changing http:// to https:// is so simple to the user, but results in so much work for both sides, and is so secure. To really understand it you need to take a security course (multiple courses to fully understand it), as the entire history of encryption goes into making your login to Gmail secure.
SSL is a protocol for encrypted communications over a TCP connection (or some other reliable scheme). The encryption uses public key encryption using X.509 certificates. SSL handles both privacy and trust. These are related: if you don't trust the server, you don't believe that the server hasn't handed out its private key to everyone in North America.
Thus, the client has to trust the server's certificate. For public sites, this is arranged via a hierarchy of certificate authorities, with the root authorities trusted, automatically, by browsers and things like the JRE's socket implementation.
Anyone can generate a self-signed certificate for a server, but then the client has to be manually configured to trust it.
Secure web pages are requested on port 443 instead of the normal port 80. The SSL protocol (plenty complicated in and of itself) is responsible for securing communication, and using the certificate information on both the SERVER and the BROWSER to authenticate the server as being who they say they are.
Generating an SSL certificate is easy. Generating one that is based on the information embedded in 99% of web browsers costs money. But the technical aspects are not different.
You see, there are organizations (Verisign, Globalsign, etc...) that have had their certificate authority information INCLUDED with browsers for many years. That way, when you visit a site that has a certificate that they produced (signed), your browser says:
"well, if Verisign trusts XYZ.com, and I trust Verisign, then I trust XYZ.com"
The process is easy:
Go to a competent SSL vendor, such as GlobalSign. Create a KEY and Certificate Request on the webserver. Use them (and your credit card) to buy a certificate. Install it on the server. Point the web-browser to HTTPS (port 443). The rest is done for you.
SSL actually does two things:
It is only for #2 that you need to get official certificates. If you only care to encrypt the communication without setting up a trust relationship, you can use self-signed certificates or you can use an algorithm that does not require certificates (i.e. Diffie-Helman).
SSL is not, in itself, a magic bullet that makes everything secure. Security has no such things.
SSL is, however, an already-designed, ready-to-use system for solving a common problem: secure stream communication over a network connection.
There are two things you need to do to secure your application with SSL:
Other answers and documentation provide better answers to how to do each of these things than I could provide.
Turning on TLS (colloquially "SSL") does not make your site magically secure. You may still be vulnerable to application-level vulnerabilities like stack overflows, SQL injection, XSS, and CSRF.
As other answers have explained, TLS only protects against a man in the middle. Traffic between a client and a properly-configured TLS server cannot be intercepted or modified, and the client can reliably confirm the identity of the server by validating the X.509 certificate. This prevents an attacker from impersonating your TLS server.
I'll throw caution to the wind and attempt to condense an enormous subject.
SSL attempts to solve two problems:
1) Authentication and hence trust i.e can the client trust the server and vice versa
2) Communication without eavesdropping
1) Is handled by means of an intermediary i.e a trusted 3rd party - these are called 'Root Certificate Authorities' ( or Root CAs ) examples include Verisign, RSA etc
If a company wants to authenticate users and more importantly if a user wants to authenticate the company's website it's connecting to i.e your bank then the Root CA issues the company a certificate which effectively says 'I the trusted Root CA verify that I trust that Company X are who they say they are and am issuing a certificate accordingly'. So you get a chain of trust i.e I trust the certificate from ACME Co because Root CA Verisign created and issued it.
2) Once the two parties have authenticated then the certificate ( typically X590 ) is used to form a secure connection using public/private key encryption.
Hopelessly simple and incomplete but hope that gives a rough idea