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The Wikipedia page is a good reference.
The actual algorithm used is going to be dependent on the language and the implementation of the language.
random() is a so called pseudorandom number generator (PRNG). random() is mostly implemented as a Linear congruential generator. This is a function of the form X(n+1) (aXn +c) modulo m. Xn is the sequence of generated pseudorandom numbers. The genarated sequence of numbers is easy guessable. This algorithm can't be used as a cryptographically safe PRNG.
Wikipedia:Linear congruential generator
And take a look at the diehard tests for PRNG PRNG Diehard Tests