Drop is resistance along the wire, estimated from circular mils.
The approximate formula is multiplier times K times amps times one-way feet, divided by circular mils. K is 12.9 for copper and 21.2 for aluminum, in ohm-circular-mil per foot. Those are planning constants, not a lab measurement of your cable. The multiplier is 2 for a single-phase round trip and the square root of 3 for three phase. Percent drop is the volts divided by the circuit voltage. The list of AWG sizes uses standard circular-mil areas. The suggested gauge is the smallest copper or aluminum area on that list that keeps the drop at or under your limit. It does not check ampacity, bundling, temperature, or the electrical code. A qualified person still sizes the circuit.