It's a simple potential divider - at different frequencies the effective 'resistance' of the capacitor C will be different, it will decrease with increasing frequency. At the frequency where the impedance (AC resistance) of C equals that of R, the output will be half the input. Where it equals half that of R the output will be 1/3, and so on. It's a fairly crude filter, but it's commonly used - and it only has a very low roll off.