(Just to be clear I'm talking about "inversion" as in inversive geometry)
Given two intersecting circles $a$ and $b$, how do you find circle $c$ such that $a$ inverted about $c$ yields $b$, and $b$ inverted about $c$ yields $a$. Circles $a$ and $b$ may intersect at one point or two points.
To illustrate in the following given the green and blue circles, how do you find the red circle?

From the definition of inversion we can see that each common tangent to the blue and green circle goes through $O$, the center of the red circle. (Namely, each line through $O$ contains the same number of blue points as green points; we get tangency when that number is $1$).
This means that there are two ways to make the green circle into the blue one:
These two ways result in different correspondences between the points on the circles, but the entire blue circle we get in each way is the same.
The value of this is that it is easy to find points on the blue and green circles that correspond to each other under the second transformation:
This only works when -- like in the diagram in the question -- $O$ is not inside the green/blue circle. If we start out with a situation where this is not the case, and carry out this construction, we'll find a different red circle, but still one that we can invert the blue circle in to get the green or vice versa. In other words, the solution is not unique.