pydoc is fantastic for generating documentation, but the documentation has to be written in the first place. You must have docstrings in your source code as was mentioned by RocketDonkey in the comments:

"""
This example module shows various types of documentation available for use
with pydoc.  To generate HTML documentation for this module issue the
command:

    pydoc -w foo

"""

class Foo(object):
    """
    Foo encapsulates a name and an age.
    """
    def __init__(self, name, age):
        """
        Construct a new 'Foo' object.

        :param name: The name of foo
        :param age: The ageof foo
        :return: returns nothing
        """
        self.name = name
        self.age = age

def bar(baz):
    """
    Prints baz to the display.
    """
    print baz

if __name__ == '__main__':
    f = Foo('John Doe', 42)
    bar("hello world")

The first docstring provides instructions for creating the documentation with pydoc. There are examples of different types of docstrings so you can see how they look when generated with pydoc.

Pydoc module in Python can be used to generate documentation in the form of html pages or even on the console

python -m pydoc 

This command gives options like view the pydoc for a file, -k search for different libraries, -p allows to open a page in web browser to view python packages, -g provides a graphical interface for looking documentation, -w writes an html output. Below are the sample commands that you can fire for testing.

python -m pydoc yourpythonfile
python -m pydoc -k ftplib
python -m pydoc -p 314
python -m pydoc -w file

I have created two sample files in a directory file1.py and file2.py which has a simple code with a single line of comment.

def f2m(ft):
    """ Return the number of meters eq to feet """
    return 0.30 * ft

One way to see the comment of the files is to simply write below in the same file and you can run python file.py and it would show the comments.

help(f2m)

Other way to see this is to write the command

python -m pydoc file1

One more way to see the comments in an html page by typing this command and exporting it to html

python -m pydoc -w <dir>

If you have multiple python files and if you want to generate HTML into separate folder then simple shell commands can do the job. Below code generates a folder 'htmldocs' and then generates html and moves them to this new folder. If you open any one at the right hand top corner you can see index option through which you can navigate through other pages.

mkdir -p htmldocs
pydoc -w `find . -name '*.py'`
mv *.html htmldocs