This is how the draft works in the NFL, too. So if you have any questions, just look up those rules. But in brief, non-playoff teams are assigned draft order based off win/loss record. In the case of a tie, the teams are ordered via strength of schedule, with those possessing the easiest SoS drafting before those with a harder SoS. If a tie persists, I believe it then goes to conference opponent records, then divisional opponent records, and then a coin flip.
In all subsequent rounds, all teams with the same W/L record will revolve up one spot, with whoever was selecting first in the group going to the last position. In other words, if two teams both had 2-14 records, the aforementioned tie breakers would decide their order for the first round. Then in each subsequent round they would flip back and forth in draft position. If three teams had tied, then after the first round, the team choosing first would move back two spots, and the other teams would both advance one. And so on and so forth.
