The formation of a downburst starts with hail or large raindrops falling through drier air. Hailstones melt and raindrops evaporate, pulling latent heat from surrounding air and cooling it considerably. Cooler air has a higher density than the warmer air around it, so it sinks to the surface. As the cold air hits the ground or water it spreads out and a mesoscale front can be observed as a gust front. Areas under and immediately adjacent to the downburst receive the highest winds and rainfall, if any is present. Also, because the rain-cooled air is descending from the middle troposphere, a significant drop in temperatures is noticed. Due to interaction with the surface, the downburst quickly loses strength as it fans out and forms the distinctive "curl shape" that is commonly seen at the periphery of the microburst. Downbursts usually last only a few minutes and then dissipate, except in the case of squall lines and derecho events. However, despite their short lifespan, microbursts are a serious hazard to aviation and property and can result in substantial damage to the area.

Downbursts go through three stages in their cycle: the downburst, outburst, and cushion stages.