The alveoli are lined with a single layer of squamous epithelial cells, which allow for easy diffusion of vital gases. Basal and apical cells refer to cells located at the bottom and top of structures, respectively. Endothelial cells line the circulatory system and blood vessels. There is no formal class of cells known as "respiratory cells."

The spherical or grape-like shape of the alveoli allows for maximum contact between the alveoli and the capillaries that surround them. The alveoli are filled with air that has been taken into the lungs from the environment, so a high surface area allows for maximum contact between air from the environment and capillaries. Oxygen rapidly diffuses through the exceptionally thin alveolar walls to the capillaries, which carry hemoglobin-containing blood cells that bind to the oxygen and shuttle it around the body. Blood cells also release carbon dioxide into the alveoli and lungs, which is why this process is called gas exchange. 

Capillaries are considerably smaller than alveoli; they surround the alveoli like a mesh, and are certainly not the cause of the alveoli's shape. Furthermore, though the cells of the alveoli do secrete extracellular matrix material, the cells affect the structure of the extracellular matrix, rather than the other way around. The shape of the alveoli is crucial to their function in gas exchange and cannot be considered an "accident," or the unexpected result of the shapes of other biological structures. 

Alveoli are the site of gas exchange in the lungs. Because rapid diffusion of gases is necessary between the capillaries and the alveoli, a very thin epithelial layer is needed. As a result, alveoli use simple squamous epithelium so that gases can easily diffuses to and from the bloodstream.

Alveoli are at the end of the respiratory pathway in humans, and act as a site of gas exchange (carbon dioxide and oxygen).

The path of air through the respiratory tract is: trachea, bronchi, bronchioles, alveoli. It is important to note that no gas exchange takes place in the bronchi, but does in the bronchioles, which are passageways that branch off from the main bronchi and eventually lead to alveolar ducts.

Micorvilli are found int he small intestine and act to increase the surface area in order to increase nutrient absorption. Secretory vesicles are used to transport proteins, hormones, and other molecules from a cell into the extracellular space.

The vast majority of the surface area of an alveolus is made up of type 1 alveolar cells, which are squamous (flat), thin epithelial cells that allow rapid gas exchange between the air inside the alveoli and blood in the surrounding capillaries. The healthy adult human has millions of alveoli in his/her lungs, providing a huge total surface area across which gas can diffuse, letting oxygen into the bloodstream and carbon dioxide out.

Diffusion is the spontaneous process by which substances move from areas of high to low concentration. During diffusion in alveoli, the high levels of  that are in the blood vessels surrounding the alveoli causes it to diffuse out of the blood vessels and into the alveoli where there are low levels of  (atmospheric air is about  ). In the same way, high levels of oxygen in the alveoli diffuses into the area of low oxygen concentration within the blood vessels. 

The alveoli's structure maximizes the efficient transfer of gas from air to the capillaries and vice versa. Therefore the contact point between air and the capillaries needs to be as thin as possible so gas has only a short distance to diffuse. Alveoli are therefore made up of a thin layer of epithelial cells that are in direct contact with endothelial cells in the capillaries.