Iron deficiency anemia is caused by a lack of iron needed to produce hemoglobin. It develops in stages starting with low iron stores, then reduced red blood cell production, and finally anemia when hemoglobin levels drop below normal. Symptoms include fatigue, paleness, and shortness of breath. It is diagnosed through blood tests measuring iron, ferritin and hemoglobin levels. Treatment focuses on increasing iron intake through an iron-rich diet, vitamin C to aid absorption, and iron supplements to restore normal iron levels in the body.