Neon is widely distributed in the entire Universe. The thermonuclear reactions between carbon and oxygen, that occur in the stars cores and are responsible for its high temperatures, can eventually create neon. Some of these stars explode, originating novas or supernovas, releasing huge amounts of gas, responsible for the existence of neon in clouds of interstellar gas.
Probably, neon was part of the condensing material that originated the Earth, being later freed to the atmosphere by the erosion of the rocks in the crust. However, most of the neon that occurs in the Earth refers to its formation period.