I'm pretty sure there are instructions when you buy those.
But it's not as simple as fitting it then off you go. (Unless you're very lucky)
Essentially, what it does is restrict the amount you pull up the seatpost as the flared bottom jams up against the bottom of the plastic insert.
I'd recommend working out your ideal seat height first (and living with it for a bit to make sure it's correct) then marking your seatpost with a sharpie to indicate correct height. Then you can use this mark to fit the plastic shim.
I didn't do this and it took a fair bit of trial and error to get it spot on as you have to cut bits off the bottom of the plastic to make adjustments. And unfortunately, it makes it a pain in the arse as you can't remove the seatpost without first removing the seat (it all comes out the bottom of the bike).
I've probably made it sound way more complicated than it needs to be, but it should save you a bit of time if you only have to take the seat off once.
Oh - and don't completely take apart the pentaclip (the bit that sits on top of the seatpost and attaches to the seat rails) when you take the seat off either as I had to google how to put that back together too.