Basically speaking a gyroscope consists of a spinning wheel or spinning rotor which is supported on an axis that is free to move on its own. The wheel is mounted on a pivoting support that allows the rotation around a single axis, or gimbal and by using two gimbals, one mounted inside the other, the gyroscope enables the rotor to move in three degrees of rotational freedom. Gyroscopes can be found in all sorts of places, aircraft, medical fields, ships, spacecraft and toys.
Perhaps the most common example is a bicycle wheel. The gravity defying force keeping the moving bicycle upright is called precession. You can experience this by setting a gyroscope in motion and then try to rotate it on its spinning axis, the force experienced is precession.
The same forces are experienced when using a Powerball. For some in depth and extremely geeky info go to Wikipedia. Someone has spent a very long time detailing this subject, way more time than I have!
Gyroscopes explained... more.
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