Setting up a Go development environment is essential for writing, compiling, and running Go code effectively. The process begins with installing Go from the official go.dev website, where users can select the version compatible with their operating system, such as 1.23 or the latest 1.24. For text editing, using a language-server-enabled editor like Visual Studio Code is highly recommended for beginners, while terminal-based editors like Neovim cater to more advanced users. After installation, creating a simple "Hello, World" application involves defining a main package and function, leveraging the standard library's `fmt` package for output, and using terminal commands like `go run` to execute the code. This foundational setup not only familiarizes developers with Go's structure but also prepares them for more complex concepts introduced in subsequent lessons.