A 'yo' doesn't use any of your existing stitches. It ADDS a stitch, and then the K2tog decreases a stitch so those two (the yo plus the K2tog) kind of cancel each other out. You don't end up with any more stitches than you started with, it just creates an eyelet design.
So you have [K3, (yo,K2tog)10times]4times as your instruction.
You are right that you will do your K3, then the yo, K2tog sequence ten times, then repeat that WHOLE thing 3 times more for a total of 4 repeats.
In order to do a yo, you just bring your yarn to the front of your work and then return it to the back by bringing it OVER the needle. This creates a new stitch and like I said earlier, does not use any of your existing stitches.
So you K3 ~ uses 3 stitches
yo, K2tog ten times ~ uses 20 stitches
at this point you have used a total of 23 stitches.
You will repeat that sequence 4 times total, and that will bring you to your 92 stitches.
A 'yo' (yarn over) is demonstrated at the bottom right of this page, it should be more helpful than my explanation.