Diabetic ketoacidosis is characterized by hyperglycemia, ketosis, and metabolic acidosis. It is caused by insulin deficiency in type 1 diabetics who stop taking insulin or due to other precipitants like infection, drugs, or surgery. This leads to increased gluconeogenesis and lipolysis resulting in high blood sugar, fatty acids, and ketone bodies causing acidosis. Treatment involves intravenous fluids, insulin administration, monitoring blood sugar and electrolytes, and bicarbonate replacement if the pH is low.