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\begin{array}{l}\phantom{256)}\phantom{1}\\256\overline{)516}\\\end{array}
Use the 1^{st} digit 5 from dividend 516
\begin{array}{l}\phantom{256)}0\phantom{2}\\256\overline{)516}\\\end{array}
Since 5 is less than 256, use the next digit 1 from dividend 516 and add 0 to the quotient
\begin{array}{l}\phantom{256)}0\phantom{3}\\256\overline{)516}\\\end{array}
Use the 2^{nd} digit 1 from dividend 516
\begin{array}{l}\phantom{256)}00\phantom{4}\\256\overline{)516}\\\end{array}
Since 51 is less than 256, use the next digit 6 from dividend 516 and add 0 to the quotient
\begin{array}{l}\phantom{256)}00\phantom{5}\\256\overline{)516}\\\end{array}
Use the 3^{rd} digit 6 from dividend 516
\begin{array}{l}\phantom{256)}002\phantom{6}\\256\overline{)516}\\\phantom{256)}\underline{\phantom{}512\phantom{}}\\\phantom{256)99}4\\\end{array}
Find closest multiple of 256 to 516. We see that 2 \times 256 = 512 is the nearest. Now subtract 512 from 516 to get reminder 4. Add 2 to quotient.
\text{Quotient: }2 \text{Reminder: }4
Since 4 is less than 256, stop the division. The reminder is 4. The topmost line 002 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 2.