The big idea in plain words
Backtracking is exploring a maze while dropping breadcrumbs. You walk forward making choices; when you hit a dead end, you walk back to the last fork, pick up your breadcrumb (undo that choice), and try a different door. Try, explore, undo - over and over, until you've covered every path.
Example: all subsets of {1, 2}. Choose 1, and you have {1}; go deeper and add 2 for {1, 2}; then back out. Now skip 1 and choose 2 for {2}. Collecting along the way gives {}, {1}, {1, 2}, {2}. That little 'undo' step is the whole magic - it lets you reuse the same path to try the next option instead of starting over.