Typical inset gas fires all use the same principles with the same basic components. They burn natural gas, which is fed into an area within a fireproof casing. This area is filled with coals that should be spaced .8 inch apart. There's a pilot assembly section underneath the coals into which gas is fed, then lit by an electrical spark. Behind the pilot assembly is a vermiculite, which is a mineral with insulating properties.
Flued gas fires are usually permanently installed fires. They have an outlet or "flue" which allows carbon dioxide emissions to be released.
Non-flued fires don't have vents or flues and are portable. These fires can be dangerous if they don't have a proper safety certificate, as they rely on catalytic converters to filter the emission. There must be total combustion, otherwise carbon monoxide and nitrogen dioxide may form.
Essentially, an inset gas fire is a large bunsen burner. The bunsen burner was commercialized by an English company in 1856. Modern gas fires work on the principle of radiating heat rather than heating the air closest to the flame.