Welcome to the forums Cosmo16!
The observations that go into Hubble's law are the red shift in the spectra of distant galaxies, and the distance to those galaxies.
As they are so very far away it is very difficult to measure these distances but it can be done by a variety of methods that combine in what is known as the distance ladder.
When Hubble first discovered his law he had little to go on to determine distance apart from the assumption that if spiral galaxies are roughly the same size and intrinsic brightness, or Absolute magnitude, (these are called standard rulers and standard candles respectively) then those that appeared smaller and fainter must be farther away. Using their angular diameter and distance modulus these distances can be calculated to about two significant places but the assumption that all galaxies are standard introduces a much greater systematic error.
Nevertheless, and using some pretty dodgy interpretation of the data Hubble concluded that z = Hd , where z is the red shift, d is the distance and H is a constant, now known as Hubble's constant. The data has got better in the past 75 years! The most recent determination of H gives it a value of around 70 km/sec/Megaparsec. It is now known to vary with the age of the universe so now it is correctly called the Hubble parameter.
The red shift of light coming from those galaxies can be explained by doppler shift, in which case these galaxies are rushing away from us, and the further they are the faster they go. So either we have intergalactic BO or there is some other explanation for their motion! However, about 10 years before Hubble made this discovery Einstein had realized that his theory of General Relativity predicted that the universe must be either expanding or contracting. He did not like this idea for philosophical reasons and introduced another term, the cosmological constant to hold the universe static. After Hubble's announcement it was realized that Einstein's theory had predicted Hubble's observation. GR explains these red shifts as the effect of the whole universe expanding, like dots on an inflating balloon all moving apart. Every galaxy therefore thinks all the others are rushing away from them. Einstein called his cosmological constant "his biggest blunder", but now we are not so sure, he might have been right in the first place!
So we have observation on the one hand and theory on the other, which interprets and explains the observation; that is the way good science progresses.
His theory in its bare form also predicts that this expansion must be slowing down, because the gravitational attraction of the galaxies upon each other slows down their mutual recession. So about 10 years ago it came as a complete surprise when distant Type Ia supernovae appeared to be fainter than they ought to! If these really are standard candles then the universe must be accelerating in its expansion. One theory to explain this is to invoke the cosmological constant again, but today there are several such competing explanations, for example perhaps these supernovae were simply fainter in the past.
I hope this helps - Garth