In general, space is really about how many squares you exert control over.
Though with respect to pawn chains, I look at it as how much room your pieces "behind" the forward-moving pawn chains have to maneuver around.
Think of it as being the ceiling of a box-shaped birdcage and watching it rise up or go down depending on how the position changes. Assuming you have birdies inside that want to move around and play, a higher ceiling means more room to fly around and get from one side to the other quickly.
Now the concept of a space advantage refers to the fact that you're evidently "creating" a lower ceiling for your opponent's birdcage (by making yours higher!) ... and therefore making his pieces suffocate/tying them down.
On the flipside, grabbing space can often mean overextending your pawns and making them targets for your opponent to go after.
I was teaching the subject of space in chess, and my student asked me an interesting question that I didn't have a good answer to: Is space determined by the number of advanced pawns you have or by how much farther advanced a single pawn is? For example, take a look at the two diagrams below. In which position does white have more space and why? What would be a good way for me to explain this concept to a beginner?