When you plug one speaker cord into the 8 ohm jack, it connects to the 8 ohm tap on the transformer. When you plug into the 4 ohm jack, it connects to the 4 ohm tap. Here's the tricky part: when you plug into both, the 8 ohm jack is disconnected from the 8 ohm tap, and both jacks are connected to the 4 ohm tap.
What's it all mean? If you use one 8 ohm cabinet, plug into the 8 ohm jack. If you use one 4 ohm cabinet, plug into the 4 ohm jack. If you use two 8 ohm cabinets (a total load of 4 ohms), plug one into each jack.
I advise against plugging one 8 ohm cabinet into the 8 ohm jack, and a 4 ohm cabinet into the 4 ohm jack. That would result in a total 2.7 ohm load, and could damage the amp. I know, you weren't going to do that, but every once in a while, someone thinks it would be okay.