You have a simple rule. Just a mapping from 3 binary digits to 1 binary digit. For example:
111 - 0
110 - 0
101 - 0
100 - 1
011 - 1
010 - 1
001 - 1
000 - 0
Then you have some sequence of digits during time t0. For example 00111010
. To find what will happen at time t1, you need to use this mapping. So 001 will be 1, then 011 will be 1, 111 = 0, then ... and 010 = 1. This way you will receive the sequence of the same length for the second generation (t1). And you move on further and further again till you will see repetition.
So on that pictures your X axis is this sequence (empty square 0, gray square 1). On your Y axis is how this sequence evolve under specific rule. In my example it was a rule 30 (because 00011110 = 30 in binary)
You can read high level overview here. Also these rules are simple, they can give rise to complex behavior.
P.S. paper was published in Nature (high level science journal) and considered revolutionized because it showed that complicated structures and motifs like dots on the leopard's skin or
the image on the shell can arise from really simple rules.