There are actually two thyroid hormones, thyroxine (T₄, or tetraiodothyronine) and triiodothyronine (T₃). Their structure is identical, except that thyroxine has four iodine atoms and triiodothyronine has three. Under normal conditions, the thyroid produces more thyroxine than triiodothyronine. The raw materials needed to form thyroid hormone are iodine and the amino acid tyrosine, both of which are normally found in a person's diet. The iodine is actively taken up from the plasma by thyroid cells, in which it is incorporated into tyrosine molecules within molecules of thyroglobulin. The two hormones are formed by condensation of two iodinated tyrosine molecules within the thyroglobulin, and the thyroglobulin and incorporated thyroid hormone are stored in the colloid. The thyroglobulin is reabsorbed into the thyroid cells and then broken down into its constituent parts; this frees thyroxine and triiodothyronine for release into the bloodstream, to be distributed throughout the body.

The two thyroid hormones have many actions. One of the most important is to regulate the metabolism of nutrients and the consumption of oxygen in cells (i.e., the metabolic rate of tissues). The hormones also stimulate the contraction of heart muscle and increase heart rate, stimulate nerve function, and increase the utilization of cholesterol and other nutrients. They are also necessary for normal growth and brain development in fetuses and infants; in both the unborn and the newborn, thyroid deficiency is associated with dwarfism and mental retardation.

The synthesis and secretion of thyroxine and triiodothyronine are regulated by thyrotropin (thyroid-stimulating hormone, or TSH), which is produced in the anterior pituitary gland. Under normal conditions, the level of thyroid hormone production is closely controlled by thyrotropin, and vice versa. Therefore, small increases or decreases in thyroid hormone secretion lead to decreases or increases, respectively, in thyrotropin secretion, so that the level of thyroid hormone in the blood serum (serum) is kept within a narrow range.

The most common thyroid disease is thyroid nodular disease (the appearance of small, usually benign lumps within an otherwise healthy gland), followed by hypothyroidism (production of too little thyroid hormone), hyperthyroidism (production of excess thyroid hormone), and thyroid cancer.