When applying internal CSS you put all your CSS rules in the <head>...</head> part of your HTML document and enclose it with <styletype="text/css">...</style> tags. A rarely used method, though it sometimes has its uses such as testing stuff on a single page.
Really there's not much point using internal CSS styles. You might as well take all those CSS rules and put them into an external .css file so it can be re-used in other pages. This will be covered in the next chapter.