Navigation is a value-added service which usually costs extra after the first few months. Your basic GPS service pinpoints your location; navigation helps you move from one place to another easily with voice directions.
You start by entering the initial and final position of your journey on a map on your phone. The system will then calculate the best route and give you turn-by-turn directions by voice: Like 'turn left', 'move straight for 50 metres and turn right'. This is especially useful if you are driving a car. If, for some reason, you deviate from the route the system can even recalculate a new route and continue giving you directions.
The navigation system typically comes with different places of interest around the city and you can customise it in many ways; for example you could tell it to give you a sound alert whenever you pass close to an ATM.
Also see: Finding gold has never been this boring