The distance formula d=1/2gt^2 derives from integrating the acceleration due to gravity, represented as a constant g. To obtain this formula, one must integrate the acceleration function twice with respect to time, which introduces two arbitrary constants of integration. Solving the initial value problem with conditions y(0)=0 and y'(0)=0 leads to the specific solution for distance fallen under gravity. This process highlights the relationship between acceleration, velocity, and displacement in the context of free fall. Understanding this derivation is essential for grasping the fundamentals of motion under constant acceleration.