To be a little more explicit:
The decibel scale is logarithmic. It takes a linear scale of something that can be easily measured (a pressure, I think -- in units of Watts/meter^2) and converts it into a logged value.
The way that logs work is exemplified the following. The log (base 10, to be specific) of 10 is 1. The log of 100 is 2. So even though the values of 100 and 10 are very different and certainly not on the scale of 2 versus 1, you can see the relationship between them fairly easily. It's because 10^1 is 10 and 10^2 is 100. Similarly, the log of 1000 is 3. So if you compare the log of 100 versus the log of 200, you get 2 versus 2.3. Doubling a value will always give around 0.3 log-units difference when you're taking the log base 10. Log of 5000 is 3.7, log of 10,000 is 4. That's why doubling the real sound output of something (say you double the power of an amp from 50W to 100W) will increase its dB level by 3dB.
The basic reason why logs are commonly used is to make things more understandable to humans, who like to work in small, easily-compared numbers. If I told you that sound A was 300 loud and sound B was 7 million loud, then you'd think that sound A would be essentially a non-sound because it's so much smaller than 7 million. But if I told you that sound A was 25 and sound B was 68, then you could understand a little bit better. It's actually sort of a tribute to the fine-ness of our measuring devices (in the case of sound, our ears) that we can use logs in an understandable way at all. The fact that we can perceive sounds that differ in magnitude by 10^12 =1,000,000,000,000 times is quite remarkable.