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If a memory location is to contain a signed integer, then it will have a sign bit (zero means positive, one means negative). Also the negative numbers are represented by a complement (normally the two's complement). The article in the related link does a good explanation.

What this means: for example, an 8 bit location could represent 256 possible numbers. In an unsigned situation, this would be 0 to 255. But in a signed situation, the range is -128 to +127.

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