Pi is defined as the ratio of the circumference of a circles to its diameter.
(pi as a symbol wasn't used until 1706)
He drew two polygons around the circle's center - 
one outside the circle (circumscribed) so its perimeter was greater than the
circle's,  and
one inside the circle (inscribed) so its perimeter was less than the circle's.
A Really Bad Example


The more sides the polygons have, the better the estimate of pi.

Archimedes used a polygon with  96 sides to show that the
    value of pi was between 
    3 10/70 and 3 10/71 !