Gypsy was created as Gypsium by Joel Robinson aboard the Satellite of Love [KTMA era MST3K Episode 00]; a robot with a male user interface personality named after the material it was constructed of. During this early period of existence Gypsium was the most dull minded and when Gypsium did socialize it was with other constructs Beeper and Crow; as well as Joel who during this era had been near to breaking mentally- believing himself to be an alien (named Joel Hodgenson) and broadcasting transmissions proclaiming his intellectual supremacy while sharing with Earth his grand inventions. Gypsium was active sometime when Demon Dogs attacked Joel during this period (seen in the opening of the KTMA era episodes). Gradually thanks to the robots like Gypsium Joel regained his sanity realizing that he's actually a janitor shot up into space by his employer who now runs a social experiment on Joel regarding the effects of television on the mind. Though this revelation didn't come until after Joel redesigned Gypsium to have a female user interface and began to refer to the unit as Gypsy (short for Gypsium).
With a new coat of paint, a better chassis, and higher functions Gypsy began to improve in personality but remained largely buisy maintaining the Satalite of Love as per her function. Though with this came a bit of self reflection and she began to see herself as a motherly figure or older sister to Tom Servo and Crow; viewing Joel at times as someone the two need to be protected from. During Episode 415 she actually harmed Joel after he (rather cruely) dominated a game of Rock Paper Sissors he was having Servo and Crow.  Her protective nature and occasional sudden act of violence tend to kick in when her higher functions are strained; such as when Demon Dogs attacked the Stallite of Love during episode 102. Their leader Enoch was invited aboard to negotiate with Joel and upon realizing the 'giant bone in the sky' isn't a real bone he agrees to leave but in that moment Gypsy arrives to investigate and recognizing the creature as hostile to the ship, and perhaps remembering a previous attack she kills Enoch which forces the rest of the crew to consider how to get the dogs to leave.
Joel would do his best to try to convince the bot to tap a bit more into its feminine programming in hopes that such would diminish moments such as those but Gypsy showed herself to be a bit more strong willed then Joel had intended and urged on by her fellow robots Gypsy became more independent. She starts to modify herself from time to time. She comes up with the plan to save Joel who she thinks the Mads are planning to kill and knocking Joel out with gas directs Crow and Tom to load him into the escape pod allowing Joel to escape the Satellite of Love and return to Earth leaving her, Tom, and Crow alone - or so it seemed until the scientist conducting the social experiment sent Mike to the station . Mike had informed her of the escape pod which she didn't know about despite being connected to the ship's systems. The pod had been labeled 'Hamdingers'. Mike would prove a more stable and energetic example of Human company and he'd help Gypsy improve though indirectly through interaction. Joel would return some time latter after learning that the satellite was rigged to blow up after 10 years- something Gypsy never realized despite being connected to the ship's systems. Mike would miss his chance to leave with Joel.
After the Satellite of Love crashes into Earth at the end of Season 10 Gypsy moved away from Mike, Tom, and Crow to start up her own business- ConGypsCo. She had publicly offered the three a role in the company but at the time they had refused. At some point her business endeavors lead her to come into contact with Jonah Heston, a good natured guy looking to save Gizmonic from financial ruin. Jonah turns out to be just an employee but Gypsy agrees to help him with this endeavor joining him aboard the Backjack (a repair ship) on a mission to repair a faulty Gizmonic Moonbase. Having worked maintenance on the Satellite of Love she was a fitting choice and even got Tom and Crow to join the mission. However it proves to be a trap with Konga Forester, the daughter of the scientist that launched Joel into space- having set off the false reading herself to lure another employee into space so she could continue her father's research. Gypsy is currently very high functioning socially and mentally, as the Backjack doesn't require as much of her processing power and due to improvements she made while operating her own business. She seems to look upon Jonah as an Uncle or Stepfather of sorts.
Gypsy is a long snake like robot designed to travel through the ducts, crawl ways, etc of the Satellite of Love. She use to be connected directly with the Umbilicus that kept the satellite tethered to the Gizmonic Institute with objects coming from the institute arriving through her maw. This was latter altered either by Joel or herself thus allowing her go about her task without something randomly coming out of her. However her current body is still capable of attaching to other facilities- she is for example able to replicate objects on demand producing a copy that drops from her mouth. However this feature went haywire  and she's not used it since the malfunction (or perhaps she did off camera in S11E01 'Reptilicus' as some speculate). She can also direct objects through her tube like body to the incinerator which is how she killed Enoch, leader of the Demon Dogs. She has a single ocular receptor that doubles as a light source.
Gypsy's favorite actor is Richard Basehart. [?]
Gypsy at times says some disturbing things but recently has mellowed or perhaps matured as an individual.
'I'll take my rage, and box it up, and take it out with the trash!" (episode "The Creeping Terror")
"Close your eyes, got to sleep, fade away, lose your soul, be replaced by a drone!"
"... I'm being tested. Who? Who is testing Gypsy? Hello! Well I will prevail because I am good and the mads are evil!" -(S5E12 "Mitchell")