In a nutshell:

An octave (for example from a C to the next C) is a doubling in frequency. In the Western diatonic system, there are 12 notes per octave. (C, C#, D, D#, E, F, F#, G, G#, A, A#, B). Notes are "evenly spaced" within the octave - every note has the same ratio between its frequency and the frequency of the next note. Hence, that ratio is ¹²√2