Diodes are polarity-sensitive components, meaning they must be soldered in the correct direction to function properly. The cathode, typically indicated by a color band or dot, should connect to the more negative terminal of the power source. For Zener diodes, the orientation can vary as they can conduct in both directions, often used for voltage regulation. Identifying the cathode and anode can also be done by checking the length of the leads, where the longer lead usually indicates the anode. Proper biasing is crucial, as forward bias allows current to flow while reverse bias effectively acts as an open switch.