Well, you don't have to wait with this until you're above the atmosphere, but this is what I usually do:
1. Press the "Sel" button and enable the Orbit-MFD.
2. Press "PRJ" to change the reference to ship.
3. Press "FRM" to change to EQU.
4. Press "DST" to set the altitudes relative to surface.
Now you have a nice tool to check the shape of your orbit.
You'll also see a long list of numbers.
For you, there are two particular interesting: ApA and PeA.
ApA means the highest altitude of your orbit above the earth's surface.
PeA means the lowest altitude.
Your ApA will be high enough if you already managed to get above the atmosphere.
PeA, will be too low (even below the earth's surface!)
5. Enable the "Prograde" autopilot, and burn your main engine (Ctrl "+"), just as long until PeA is above 160 km.
Then you can turn of the engine (the * key on numpad), and enjoy the view in your first stable orbit around earth!

Being in orbit means you'll keep falling around and around the earth, without ever hitting it.
But again, the best thing to do, is to follow some tutorials (it's the same as reading replies on the forum!). Another good start would be to open Orbiter.pdf, and start with the basic step-by-step tutorials.
regards,
mcduck