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How does a fuel gauge work? - johnny
Specifically my Zafira 1.6 - gauge seems to vary a lot. Do they have a floaty type thing or is it more technologically advanced than that?
How does a fuel gauge work? - Dynamic Dave
More than likely you'll have a float which is connected to a potentiometer (variable resistor).

auto.howstuffworks.com/fuel-gauge.htm
How does a fuel gauge work? - mjm
When you say "vary a lot", do you mean that the needle moves around a lot in normal driving? Most sender units in the tank have the float mounted in a damper tube to help give a steady reading. If your system is the same it may be that the tube has become detached.