We constrain cosmological parameters and galaxy-bias parameters using the combination of galaxy clustering and galaxy-galaxy lensing measurements from the Dark Energy Survey Year-3 data. We describe our modeling framework and choice of scales analyzed, validating their robustness to theoretical uncertainties in small-scale clustering by analyzing simulated data. Using a linear galaxy bias model and redMaGiC galaxy sample, we obtain constraints on the matter content of the universe to be $Omega_{rm m} = 0.325^{+0.033}_{-0.034}$. We also implement a non-linear galaxy bias model to probe smaller scales that includes parameterizations based on hybrid perturbation theory, and find that it leads to a 17% gain in cosmological constraining power. Using the redMaGiC galaxy sample as foreground lens galaxies, we find the galaxy clustering and galaxy-galaxy lensing measurements to exhibit significant signals akin to decorrelation between galaxies and mass on large scales, which is not expected in any current models. This likely systematic measurement error biases our constraints on galaxy bias and the $S_8$ parameter. We find that a scale-, redshift- and sky-area-independent phenomenological decorrelation parameter can effectively capture this inconsistency between the galaxy clustering and galaxy-galaxy lensing. We perform robustness tests of our methodology pipeline and demonstrate stability of the constraints to changes in the theory model. After accounting for this decorrelation, we infer the constraints on the mean host halo mass of the redMaGiC galaxies from the large-scale bias constraints, finding the galaxies occupy halos of mass approximately $1.5 times 10^{13} M_{odot}/h$.
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