1) Permanent magnetic dipoles in matter originate from unpaired electrons in atoms. The magnetic moment of electrons is expressed in Bohr magnetons.
2) In solids, overlapping atomic orbitals can reduce magnetic moments. For example, Fe has a moment of 4 Bohr magnetons individually but 2.2 in crystal form due to orbital overlap.
3) Materials exhibit paramagnetism, diamagnetism, ferromagnetism or ferrimagnetism depending on their electron configuration. Ferromagnetic materials have spontaneous magnetization above their Curie temperature due to positive exchange energy between atomic spins.