it's the average of the current prestige grades for the 12 teams in your conference.
If you use numbers to replace the grades; F=0, D- 1, D 2, D+ 3....A- 10, A 11, A+ 12
Add those numbers up for the 12 teams and you get an overall Conference Grade.
The cutoff between Good and Very Good is a combined score of 90/91. Which is an average of 7.5, or a B- for Good vs a B prestige grade for Very Good
I think Good goes down to around 5.5, or a C/C+