Unsupervised learning is what happens when the data has no labels. Nobody has marked which points belong together, so there is no right answer to reproduce and no accuracy to measure. The algorithm has only the data's own shape to work with.
K-means is the most widely used version of that idea. You tell it how many groups to look for — the k — and it alternates two steps until nothing changes: assign every point to its nearest centre, then move every centre to the average of the points that chose it. Each step can only reduce the spread within clusters, which is why it always settles. But you have to supply k, and the algorithm cannot tell you when you picked wrong.