Shulchan Arukh, Orach Chayim 8/שולחן ערוך·אורח חיים ח׳

1He shall wrap himself in a fringed garment and make the blessing over it while standing up.

2The order of wrapping is like the way that a person covers his head for work. Sometimes his head is covered and sometimes his head is exposed. And it is correct to cover the head with the fringed garment.

3Small fringed garments (talit katan) of ours that are customarily worn, even though they are not wrapped, they fulfill our obligation for fringes. And it is good that one places it over one's head, the long way, and wrap it. He should stand this way wrapped for at least the amount of time it would take to walk four cubits. After this he can pull it over his head and wear it normally.

4One should return two of the fringes in front, and two behind, in order to be surrounded by the commandments.

5One should bless "to wrap oneself in fringes". If two or three are wrapped as one fringed garment (that is, each in their own but garment but at the same time) they each bless. If they want, one can bless, and the others can answer Amen.

6...On a small fringed garment (talit katan) one can bless "to wrap oneself" even though there is no wrapping rather wearing. Ramah: There are those that say ones should bless on it "on the commandment of fringes", and this is the custom and do not change this (Kol Bo Siman 22, and the Nimukei Yosef, Hilchot Ketanot Page 66:)

7One must separate the strings of the fringes from each other.

8...One should have this intention in wrapping: That God commanded us to wrap ourselves in it in order to remember all of his commandments and to do them.

9Before making the blessing, one should check the strings of the fringes to ensure that they are fit, so that he will not be making a blessing in vain.