If I may jump in here,
Threshold is the dB level at which point the Compressor "kicks in."
So say you set your threshold to -20dB. That means that when the level of the signal goes above -20dB, the compressor starts working.
The Ratio is the reduction relationship between the output and input levels. A Ratio of 4:1 means for every 4 dB of input gain above the threshold, the output is 1 dB. Basically, the Output is 4 times as less as the Input.
Gain is the Output gain after compression has happened. This is where you can boost the gain of the over signal, but because of the compression, the really loud sounds will not clip.
As Wikipedia says, a Limiter is a Compressor with a higher ratio, usually 10:1. Basically anything above the threshold is reduced to a negligible amount.
Knee is a little harder to explain (at least for me) without the visual, but it adjusts the point at the threshold, if it's a "hard" curve, or a "soft" curve.
There are other controls such as attack and release time. Attack adjusts the time it takes for the compressor to fully engage, and release adjusts the time it takes the compressor to reset.
Like Jimmy said, play with it, till you see it engage, and listen to what happens.