Image adapted with permission from Prof James Marshall"s (U. North Texas, USA) Walking Tour of the elements CD.
It is a very inert element. Neon forms an unstable hydrate. In a vacuum discharge tube, neon glows reddish orange. Of all the rare gases, the discharge of neon is the most intense at ordinary voltages and currents. It is present in the atmosphere as 1 part in 65000. Liquid neon has over 40 times more refrigerating capacity than liquid helium, and more than 3 times that of liquid hydrogen.
Here is a brief summary of the isolation of neon.
Neon is present to a small extent in the atmosphere and is obtained as a byproduct from the liquefaction and separation of air. This would not normally be carried out in the laboratory and neon is available commercially in cylinders under pressure.