Gates operate using binary inputs, represented as 0 (low voltage) and 1 (high voltage), with specific voltage levels defining these states varying by technology. The output of logic gates, such as AND gates, depends on the combination of inputs; for example, both inputs must be high for the output to be high. The discussion highlights that the presence of a low input (0) will result in a low output, regardless of the other input. Additionally, the conversation touches on different logic families like TTL and CMOS, which operate at different voltage levels. Understanding these fundamentals is crucial for grasping how logic gates function in electronic circuits.