Radio occultation observations represent a planetary-scale optics experimen
t in which the atmosphere acts as a lens and alters the propagation velocit
y and paths of microwave signals passing through it. In this paper we revie
w the process of inverting the radio occultation observations acquired usin
g the Global Positioning System (GPS) in order to derive atmospheric quanti
ties of interest including temperature, geopotential and water vapor. Begin
ning with geometric optics, we derive the Abel integral used to transform t
he observations into profiles of refractivity, In the process, we character
ize why the Abel transform works so well as a first approximation for deriv
ing atmospheric profiles. We discuss the resolution of the observations and
the improvements that can be achieved via the backpropagation concept wher
e the receiver's position is effectively moved closer to the limb of the Ea
rth in post-processing. We discuss several factors that complicate the obse
rvations in the Earth's troposphere including critical refraction and atmos
pheric multipath. Critical refraction refers to the situation where the ben
ding becomes so great that the occulted signal disappears whereas atmospher
ic multipath refers to the situation where multiple signal paths connect th
e transmitter and receiver. We describe the derivation of temperature, pres
sure and water vapor from the observations including the optimal combining
of the occultation observations with weather and climate analyses. We descr
ibe some key issues in deriving profiles from real data including the corre
ction of dock errors and ionospheric effects, and the estimation of the res
olution and atmospheric Doppler in a self-consistent manner. We conclude by
summarizing the expected and achieved accuracy and resolution.