IP Address Allocation refers to the process of assigning unique numerical labels, known as IP addresses, to devices connected to a network. These addresses enable devices to communicate with each other over the internet. There are two main types of IP addresses: IPv4, which consists of four sets of numbers, and IPv6, which is a newer format designed to accommodate the growing number of devices. The allocation of IP addresses is managed by organizations like the Internet Assigned Numbers Authority (IANA) and regional registries. They ensure that each address is unique and distributed efficiently to prevent conflicts and maintain network stability.