Initially when looking at an IP address, you see 4 numbers with a period (.) in between. Take a random IP address like 192.168.1.2 broken down in the following picture:
An IP address has a total of 4 OCTETS which are the spaces number areas between the periods. Within each OCTET, there are 8 bits. 8 bits x each of the 4 OCTETS = 32 bits. Simple enough? Are you now asking how 8 bits create a number? If so, great question. That will be in next weeks Decimal to Binary & Binary to Decimal post.
Have a great day and let this sink in.