HI BH,
First, welcome to the board, please feel free to ask away, there are alot of experienced people and instructors here. Now your question. You do hold your breath in a way and you don't blow any air out your nose or mouth. It' kind of hard to explain but not hard to do once you get the idea. You block off your throat and put a LITTLE air pressure on your ear drums. Move and flex the muscles in your neck and jaws until you find what works best for you. It helps to go ahead and practice on land, it actually gets easier with practice. If you do it correctly, your ears will pop, just like going down a mountain or in a plane. When equalizing your ears in a real dive, be sure to start early and equalize very often and never force it. If you have gotten to the point it hurts (and believe me IT WILL hurt) you have gotten too deep and need to go back up several feet and start again. I actually equalize almost constantly the entire way down to the bottom. There have been a lot of discussions on this board over the years, do a search on the board and look for other discussions on equalizing.
Again, welcome aboard.