A Zener diode allows current to flow from anode to cathode like a normal diode, but also permits reverse current flow above its breakdown voltage. It was named after Clarence Zener who discovered the Zener effect of electron tunneling caused by a strong electric field. A Zener diode can be used as a voltage regulator or voltage reference by maintaining a constant voltage drop across its terminals when reverse biased above its breakdown voltage. Modern Zener diodes provide stable and consistent breakdown voltages through precise doping techniques.