A bit of history and basic physics to add to the above writeup:
A gyroscope is a disc, weighted heavily and evenly around the outside, that spins quickly around an axis. When spinning fast enough the gyroscope will resist gravity and 'stand up'. The most basic of gyroscopes is the common spinning top.
Gyroscopes have been in use for thousands of years, though originally they were used in the form of spinning tops to entertain and in ceremonies. It wasn't until the mid 1700s that Serson, an English scientist came up with the theory that a gyroscope, since it remains level despite the movement of its surface, could be used as a navigation tool in a ship. This was useful as sextants were the main device used to navigate but they relied on the stars and the horizon. Serson theorized that the gyroscope could be used as an artificial horizon.
In the 19th century Fleuriais designed a gyroscope that made using them much more efficient. Since a gyroscope stops spinning due to friction Fleuriais made a gyroscope with holes on the rim. By blowing air into the holes the gyroscope was kept spinning, and therefore it was kept upright.
A gyroscope acts according to Newton's Second Law, which can be seen at work with the formula f=ma, which shows that force (f) is directly proportional to the size of the mass (m) and acceleration (a). At a certain speed the gyroscope will resist certain forces, such as gravity, and remain upright. This is due to the conservation of angular momentum. Angular momentum is the rotating force of any particle. In a gyroscope, which has no point on around its edge with more or less weight then any other point, this means that every point is spinning at the same speed, and no point is moving faster or slower than any other point.
This also means that gravity is not acting at any greater magnitude on one point than it is on any other point around the edge of the gyroscope, keeping the gyroscope balanced due to constant velocity and gravitational forces across the gyroscope. This keeps the gyroscope upright.
When a force is applied to the axis precession occurs. Precession is the change in the direction of the axis of a rotating object, and occurs due to torque, which is a movement at an angle rather than a push or pull. As precession only occurs due to torque, the movement must be at an angle, such as turning left or right, or the front or back of the axis being forced up or down.
A gyroscope will try to keep itself level to minimize energy used, which, in conjunction with the force of gravity, is why a car will try to level itself out when going up a hill by rolling down. In a boat or plane this can result in the vehicle turning about the center of gravity in the vehicle.
As friction, either air resistance, or the friction on the bearings of the axis of the gyroscope, reduces the speed of the gyroscopes rotation. This means that if the speed of the spin of the gyroscope is not kept constant then the gyroscope's rotation will slow down. Gravity will begin to have a greater hold on the vertical position of the gyroscope, and eventually the gyroscope will slow down enough for gravity to pull it down to the surface it is on. This is because when the forces of angular momentum and gravitational pull are not balanced, the gyroscope will not remain standing.
Torque is a rotational force on the axis or disc. It can be in the form of air resistance, other friction or a push or pull on the direction of the gyroscope. Torque acts like acceleration acting on a moving object; it either compliments the movement and speeds up the rotation or acts against its movement and slows down the spin. If a sufficient enough negative torque is applied it can change the direction of the spin entirely, just like negative acceleration on a moving object.
To reduce the precession of a gyroscope it is often gimbaled so the disc remains suspended in the same plane regardless of other forces. When a gyroscope is gimbaled if has two rings around it that are mounted on an axis at 90� to each other. By adding the two gimbals the gyroscope is supported and so is unable to show precession when a force acts upon the spinning disc's axis.
These days gyroscopes are used in many difference devices for navigation, stabilization or to follow the movement of objects. Boats and planes use gyro-compasses that are basically gyroscopes that are mounted so they can move freely. This acts like a compass as it always points the same way, but as it is not affected by the magnetic north it can be more accurate.
In order to keep robots upright and balanced gyroscopes are used. This concept is also used in computer pointing devices. They gyroscope inside the device tracks the movement of the hand and translates them into cursor movements. Gyroscopes are also used for stability in motorbikes, as otherwise the bike would not remain upright when moving.
This writeup was brought to you by NYH. If you've seen this on your desk, don't panic, I may be your Physics student.