Ligand Field Stabilization Energy (LFSE) is the energy difference between the stabilized state of a metal complex due to the presence of ligands and the energy of the metal ion in isolation. LFSE arises from the splitting of d-orbitals when ligands approach the central metal ion, leading to different energy levels that depend on the geometry of the complex. This concept is critical in understanding how ligands influence the stability and reactivity of coordination compounds.