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The picture password works in a manner that the way in which you draw the patten of the picure password, that will got stored as password.
Next time when you login to it then in the same way you have to type the pattern of picture password so it will match to the previous one and then it will Authenticate the user.
For setting the picture password to the windows 8 you may visit the link: setting picture password in windows 8.
If you like to use the patter lock on Android, you will probably like the picture passwords on a Windows 8 tablet. Instead of a 3x3 box of dots to connect in your chosen pattern, you take a photo and connect noses/elbows/clouds/whatever in a set pattern that you chose. You can do things such as circle a face, then draw a line from foot to hand, for example. I've never sat down and tried to figure out someone else's lock pattern, but I would imagine it would be reasonably secure. There are always smudges that could give you away, I suppose, if you don't maniacally clean your screens the way I do.