What is gradient banding?
Banding refers to the visible change from one color to another instead of a smooth, fading gradient. You're most likely to see color banding in gradient backgrounds you create for your renderings or in photographs, natural gradients like skies are prime for color banding.
How do you fix gradient banding?
If you ever create a gradient that contains banding (the visible lines in a gradient when transitioning from one color or tone to another), add a very small amount of noise (Filter > Noise > Add noise) and bur (Filter > Blur > Gaussian Blur) to the gradient to break up the banding and give you a smoother blend.
What causes banding?
Banding happens when you do not have enough information in your file. Or you push the edits to an extreme. Avoid banding by making a well-exposed photograph and saving it as an uncompressed RAW file. To fix color banding, make subtle edits and limit how much you compress the photo when exporting as a JPEG.