Step 1: Understand Zener diode operation.
A Zener diode is a heavily doped p-n junction diode designed to work in reverse breakdown region.
Step 2: Key property of Zener diode.
In breakdown region, Zener diode maintains a nearly constant voltage across it even if current changes.
Step 3: Application in circuits.
Because of this constant voltage property, it is used as a voltage regulator.
Voltage regulation means stabilisation of voltage.
Final Answer:
\[
\boxed{\text{stabilisation}}
\]