The update is being offered OTA (Over-the-Air) and is 31 MB in size. Users should receive a notification when the update is available for your device and you can check for availability under Settings.
After the update the Nexus 7 homescreen can now be rotated to landscape view, which is something users were disappointed didn’t make it to the tablet. The update also brings several performance improvements and bug fixes and is also reported to bring the following fix:
Future variants of the grouper hardware will have a minor change in one of the components (the power management chip) that will not be compatible with 4.1.1.This ads evidence to the rumors of a 32GB model of the Nexus 7 along with reports which suggested that there was space reserved in the Nexus 7 chassis for a rear facing camera.
source – Droid Life