Assuming that you know the Taylor series expansion of $\ln(1+x)$ at $0$ is
$$
\ln(1+x)=\sum_{n\ge1}(-1)^{n+1}\frac{x^n}{n},
$$
the ratio test for $x\ne0$ can be applied: since
$$
\left|\frac{(-1)^{n+2}x^{n+2}/(n+1)}{(-1)^{n+1}x^n/n}\right|=
|x|\frac{n}{n+1}
$$
and
$$
\lim_{n\to\infty}|x|\frac{n}{n+1}=|x|
$$
we know that the series converges for $|x|<1$ and doesn't converge for $|x|>1$.
It obviously doesn't converge for $x=-1$, because we get the (opposite of the) harmonic series; for $x=1$, the Leibniz test applies and the series converges. It can be proved that, for $x=1$, the series indeed converges to $\ln2$.
As to “why” the series only converges in this interval, the answer can be found in the theory of analytic functions.
The function $\ln(1+x)$ can be extended to an analytic function in the complex plane provided we exclude the set of complex numbers $z$ with $\Re(z)\le-1$ and $\Im(z)=0$. Such an analytic function has a singularity at $-1$, hence the Taylor expansion around $0$ cannot have a radius of convergence greater than $1$ (and actually has $1$ as radius of convergence).