Gluconeogenesis is the formation of glucose from non-carbohydrate precursors like lactate, glycerol, and certain amino acids. It is important for maintaining blood glucose levels during periods of fasting or low carbohydrate intake to supply glucose to the brain and red blood cells. The key steps of gluconeogenesis occur in the liver and kidneys and involve the reversal of three irreversible reactions in glycolysis through different enzymes. Gluconeogenesis is regulated by hormones like glucagon and substrates availability to control blood glucose levels.