Oxygen therapy involves administering oxygen at concentrations higher than in ambient air to treat hypoxemia or hypoxia. It works by increasing oxygen content in the blood and oxygen flux to tissues. While beneficial, high concentrations of oxygen can cause toxicity issues like pulmonary toxicity from exposure to partial pressures over 50kPa and CNS toxicity over 1 atmosphere. Care must be taken to avoid complications like hypoventilation, retinopathy of prematurity, absorption atelectasis, and fire hazards.