why is x^0 is always 1? How does it work?

This is true for all real x except  x = 0

Example   ...let a be some non-zero real number....then

a⁰  = a^n-n =  aⁿ / aⁿ   = 1

If x = 0, we have  0⁰    which is known as an "indeterminate" form