Hypoxia can result from decreased oxygen content in the blood or failure to ventilate the lungs adequately. It presents with low oxygen saturation, lethargy, agitation, tachycardia, and potentially cyanosis. Causes include equipment issues, gas problems, ventilation failure, shunting of blood, poor oxygen delivery, and increased demand. Immediate management involves providing 100% oxygen, securing the airway, suctioning secretions, and addressing any ventilation problems while diagnosing the underlying cause. Ongoing monitoring and supplemental oxygen may be needed postoperatively to ensure adequate oxygenation.