Really I think you need to ask this as 2 questions...1) How does a PN junction work? 2) How does this affect a circuit - how is it used? I say this because you do not need to completely understand one to understand the other.
When a voltage is applied on a PN junction you are said to "bias" the junction - and sets up an electric field in the semiconductor. In the forward mode the "holes" in the P side and Electrons in the N side are pushed together by the electric field in the diode - when an electron - combines with a hole this in essence allows current flow. It is a lot more complicated but that is as simple as I can state it. In the reverse bias, the Holes and Electrons are pulled away from each other, they can not combine - and they can not conduct current.
As for use - think of the device as a one-way valve.
BTW introduction to semiconductors is a full semester EE, or Solid State Physics class - the HOW they work... granted it covers much more than diodes. I am not saying you need a semester class, but you probably can not figure it all out in a forum without a lot of research on your part. But note the Use side, how Diodes and other basic semiconductors are applied, is typically only a part of a circuit analysis course. - Using them is easier than understanding them.