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As described by social psychologists David Dunning and Justin Kruger, the bias results from an internal illusion in people of low ability and from an external misperception in people of high ability; that is, "the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others". It is related to the cognitive bias of illusory superiority and comes from people's inability to recognize their lack of ability. Without the self-awareness of metacognition, people cannot objectively evaluate their level of competence.
Colloquially, people experiencing this bias are said to be "on Mount Stupid".