Zener Diode is used as a voltage regulator
When applied reverse voltage V is less than zener voltage Vz i.e., V < Vz, then zener diode does not conducts any current, and is said to be in OFF state. When V > Vz then zener diode conducts current at constant voltage Vz and is said to be in ON state.
Such zener diode is used in voltage stabilisation across a circuit.For this it is connected in parallel across the load resistor RL in reverse bias. Suppose an unregulated d.c. input voltage Vin is applied to the zener diode of breakdown voltage Vz.When Vin < Vz zener diode does not conduct any current and hence input voltage appears across the load RL.When Vin > Vz ,then the zener diode is in breakdown condition,and allows large reverse current to flow through it, keeping the voltage across it constant at Vz, which remains unaffected by value of load RL .Thus, the output voltage across the zener diode is regulated voltage.