There are two fairly straight forward ways to understand this:
- As a problem in "statics" involving forces and torques on the lever.
- In terms of conservation on energy between the work done by the person operating the lever and on the load lifted.
Setup
We will, for simplicity, consider the situation where the lever is essentially horizontal (showing that the results hold at other angles is left as an exercise), and will treat the lever as a straight bar of length $l = l_1 + l_2$. Three forces act of the bar, the applied force $F_a$ acts downward atdistance 0, the fulcrum force $F_f$ acts upward at distance $l_1$, and the load $F_l$ acts downward at distance l.
Note that so far I have not said anything about the ratio $l_1/l_2$.
Statics
We require that $\sum F_i = 0$ and $\sum \tau_i = 0$ (the sum of the forces and the sum of the torques acting on the bar are zero). I'll measure the torques around the fulcrum.
$$ -F_a + F_f - F_l = 0 $$
$$ F_a \cdot l_1 + F_f \cdot 0 -F_l \cdot l_2 = 0 $$
Immediately we can see that the system is underconstrained and we have one free parameter; that the weight of the load, so we'll express $F_a$ and $F_f$ in terms of $F_l$.
From the torque equation we get $F_a = \frac{l_2}{l_1} F_l$, and plugging that into the forces equation we get $F_f = (1 + \frac{l_2}{l_1}) F_l$.
Energy concerns
The best case is that the machine wastes no energy; we assume this case.
While the bar moves through a small angle $\alpha$ near the horizontal the applied force moves through a distance $-\alpha \cdot l_1$, and the loaded end through a distance $\alpha \cdot l_2$, computing the work done my each end we get
$$ W_a = -F_a \alpha l_1 $$
$$ W_l = F_l \alpha l_2 $$
By assumption these must add to zero, so
$$ F_a = \frac{l_2}{l_1} F_l $$
as before.
Conclusions
If the load is on the short end then $l_2 < l_1$ and $\frac{l_2}{l_1} < 1$ and you require less force to lift the load, but the load moves a shorter distance.
If the load is on the long end then $l_2 > l_1$ and $\frac{l_2}{l_1} > 1$ and you require more force to lift the load, but the load moves a longer distance.