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Neon gas has a break-down voltage of about 70 volts. When the gas (in a neon voltage regulator tube) breaks down, the gas glows red. If more voltage is applied (within sensible limits) the voltage drop across the neon VR tube will still be 70 volts. This action by itself could result in a large current flowing in the gas tube and possibly to destroy it, so a resistor is placed in series with the neon VR tube to limit the current. And this is better for the neon tube as well.

THUS a neon voltage regulator tube forms a reference voltage which can be used, with clever circuitry, to regulate any voltage.

Other gas mixtures are used for other voltages. There are solid-state devices with similar properties.

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