A valuation $v$ satisfies a conditional $\phi\to\psi$ when: if $v$ satisfies $\phi$, then $v$ satisfies $\psi$. Equivalently, $v$ satisfies $\phi\to\psi$ if it satisfies $\lnot\phi$ or satisfies $\psi$. (This is the equivalence between $\phi\to\psi$ and $\lnot\phi\lor\psi$.)
Suppose that the set of valuations that satisfy a sentence $\phi$, that is, $[\phi]$ is a subset of the set of valuations that satisfy a sentence $\psi$, that is, $[\psi]$. Symbolically,
$$ [\phi] \subseteq [\psi] \tag{1}$$
Now pick an arbitrary valuation $v_0$. If it satisfies $\phi$, then it is an element of $[\phi]$, and so, by (1), also of $[\psi]$. Then since $v_0$ makes both $\phi$ and $\psi$ true, it makes $\phi\to\psi$ true as well. On the hand, if $v_0$ does not satisfy $\phi$, then it also makes $\phi\to\psi$ true, because a conditional is true in the case that the antecedent is false. Since $v_0$ is arbitrary, we conclude that every valuation satisfies $\phi\to\psi$.
We started with the assumption that $[\phi] \subseteq [\psi]$, so our final conclusion is a conditional:
If the set of all valuations that make $\phi$ true is a subset of the set of all valuations that make $\psi$ true, that is, $[\phi] \subseteq [\psi]$, then every valuation in $M$ satisfies $\phi\to\psi$.
That's one direction of the final biconditional. The other direction is proved by supposing that $[\phi\to\psi] = M$. You are right in observing that for some $\phi$ and $\psi$, it is impossible that this is actually the case, but for others it is quite possible, even when $\phi$ and $\psi$ are propositional variables. For instance, consider the case $P \to P$, where $\phi$ is $P$ and $\psi$ is $P$. At any rate, the proof would proceed by asking what it means that every $[\phi\to\psi] = M$. It means that for every $v \in M$, $v$ satisfies $\phi\to\psi$. What does that mean? … And so on, until reaching the conclusion that if $v$ is in $[\phi]$, then $v$ is in $[\psi]$, which implies that $[\phi] \subseteq [\psi]$. (You said you didn't need a whole proof, so you can fill in the “…”.) This direction concludes that
If every valuation in $M$ satisfies $\phi\to\psi$, then the set of all valuations that make $\phi$ true is a subset of the set of all valuations that make $\psi$ true, that is, $[\phi] \subseteq [\psi]$.
Then the two are combined, and the biconditional is proven.