Repolarization is the process by which a neuron restores its resting membrane potential after depolarization, primarily through the movement of ions across the neuron's membrane. This critical phase occurs during an action potential and is essential for the proper functioning of neurons, as it allows them to reset and become ready for the next signal transmission. The repolarization phase involves the closing of sodium channels and the opening of potassium channels, leading to a return to a negative membrane potential.