Sure. In a nutshell, the galaxy isn't a big puck; it's a series of cubes. We call these "boxels". The largest (H) is 1280 x 1280 x 1280 (aka 1280^3) and is exactly the size of an entire sector. Contained within that is 8 cubes (G) measuring 640^3. Each of those contains 8 cubes (F) measuring 320^3... and on down to the smallest (A) which is 10^3.
So breaking this down a bit further, the letters we call mass codes, because they (mostly) coincide with the potential mass of a given system. So a system with an A mass code will be lighter than a system with B mass code, which will be lighter than one with C, etc. This is why most systems with brown dwarf primary stars are in A mass codes, and most systems with massive exotic stars are in H.
As for how to make use of this info, I'll break down your typical procedural generated system name:
[SECTOR NAME][POSITION CODE][MASS CODE][POSITION OFFSET][SYSTEM NUMBER]
Using Eol Prou XY-V c4-40 as an example, your sector name is Eol Prou, position code is XY-V (Plus the position offset, 4, which you need because there are 17,576 three letter combinations and 2,097,152 potential A boxels in a single sector.) and is a base26 code for locating a cube of the size denoted by the mass code. The mass code, c, I explained already, and the system number is the last digits, in this case 40.
I'm being very brief here, but hopefully it makes some sense?
Cmdr Urania Minora of the IGAU put this handy infographic together:
Hope that helps!
- Cmdr Taen