The main function of the bearing is generally to support the rotor.
Oil is used for lubrication and sometimes heat removal.
There are many different configurations for retaining the oil: grease was mentioned, oil bath (not suitable for all types bearings), oil-ring lubricated, forced oil, hydrostatic lubrication.
The two basic types of bearings are rolling-element (anti-friction) and sliding bearings.
In all bearings the force is transmitted somehow through the oil since oil is between the metal parts preventing metal to metal contact.
In sliding bearings such as sleeve, tilting pad, there is generally hydrodynamic lubrication which relies on the viscosity of the oil to prevent contact.
In rolling element bearings there is generally elastohydrodynamic lubrication (I think that's thre right word). The viscosity of the oil goes up greatly under pressure.
Try some searches on google and try to form more specific questions.
=====================================
Eng-tips forums: The best place on the web for engineering discussions.