Before getting into what causes HDD failure, I must link to the exceptional tests & statistics published by backblaze regarding hard drive reliability across brands & models. Their work is incredible!
Hard drives have moving internal components in them like platters and read/write heads. Over time, these parts wear out due to constant use; just like the innards of a vehicle transmission. Continuous motion causes parts to degrade, and eventually fail.
A head crash happens when the read/write head touches the spinning platter, which stores data. This can damage the magnetic surface, leading to permanent data loss. Head crashes are usually caused by physical shocks or excessive vibration, like being dropped.
The spindle motor that spins the platters can fail, which keeps the hard drive from running. This is usually due to wear over time, or sudden mechanical shocks like being dropped.
Sudden power surges can damage the electronic components of a hard drive. This includes the circuit board, which controls the drive.
The PCB controls the communication between the hard drive & your computer. If the PCB fails, the hard drive can stop working properly. PCB failures are often due to manufacturing defects or external electrical damage.
Firmware is the software that controls the hard drive. Corruption in firmware can make the drive unusable & impossible to access; this can occur due to software bugs, failed updates, or malware.
Hard drives are designed to operate within certain temperature ranges. Overheating can cause components to fail,
High humidity can cause condensation inside a drive, causing corrosion & electrical shorts. Keeping your hard drive in a controlled environment can help prevent these issues.
Dropping or bumping your hard drive can cause physical damage, leading to failures. This is most likely what led you to this page looking for data recovery! Dropping external drives is the most common cause of someone becoming a data recovery customer. Always handle your drive with care and avoid moving it while it is operating.
Opening a hard drive outside of a clean room means dust getting into the drive, and can lead to platter damage as well as read errors. Always leave hard drive repairs at this level where platters & heads are exposed to professionals to avoid this type of damage.
Improper shutdowns(hitting the power button rather than clicking shut down/power off), software crashes, or malware can corrupt the file system, causing the drive to not boot up properly.
Bad sectors are areas on the hard drive that become unreadable due to physical damage or wear. Over time, bad sector counts build up and can lead to data loss as well as slow access speeds.
Avoid physical shocks and handle your hard drive carefully. Ensure it is securely mounted in your computer to prevent vibrations and impacts.
There's no #2 here really... this is the most common cause of hard drive failure.