Crystal field stabilization energy (CFSE) is the energy difference between the energies of the electrons in a crystal field and those in an isolated atom. CFSE arises from the splitting of degenerate d-orbitals in transition metal complexes due to the presence of surrounding ligands, which affects the electronic configuration and stability of the complex. This concept is crucial for understanding the magnetic properties and color of coordination compounds, as it influences the arrangement of electrons in d-orbitals under varying ligand fields.