Grafana Alerting, based on the Prometheus model, allows users to template alerts using custom labels and annotations while providing the capability to customize notification templates to control the appearance of alerts. The system consists of an alert generator for scheduling and evaluating rules and an alert receiver for managing notifications, with labels serving as unique identifiers and annotations providing additional alert information. The blog post clarifies the distinction between templating labels and notification templates, emphasizing the appropriate scenarios for each and offering examples of effective templating practices. It highlights the benefits of customizing alert notifications to meet diverse user preferences, showcasing various examples like including labels, annotations, and links to silence alerts or view them on Grafana. The guide underscores the importance of understanding the Prometheus-based alerting framework, noting that while Grafana Alerting doesn't use Prometheus as its generator due to its compatibility with multiple data sources, it utilizes Alertmanager for notifications.