In the existing studies on the atmospheric energy cycle, the attention to the generation of available potential energy (APE) is restricted to its global mean value. The geographical distributions of the generation of APE and its mechanism of formation are investigated by using the three-dimensional NCEP/NCAR diabatic heating reanalysis in this study. The results show that the contributions from sensible heating and net radiation to the generation of zonal and time-mean APE (Gz) are mainly located in high and middle latitudes with an opposite sign, while the latent heating shows a dominant effect on Gz mainly in the tropics and high latitudes where the contributions from the middle and upper tropospheres are also contrary to that from the low troposphere. In high latitudes, the Gz is much stronger for the Winter Hemisphere than for the Summer Hemisphere, and this is consistent with the asymmetrical feature shown by the reservoir of zonal and time-mean APE in two hemispheres, which suggests that the generation of APE plays a fundamental role in maintaining the APE in the global atmospheric energy cycle. The same contributions to the generation of stationary eddy APE (GSE) from the different regions related to the maintenance of longitudinal temperature contrast are likely arisen by different physics. Specifically, the positive contributions to GSE from the latent heating in the western tropical Pacific and from the sensible heating over land are dominated by the heating at warm regions, whereas those from the latent heating in the eastern tropical Pacific and from the sensitive heating over the oceans are dominated by the cooling at cold regions. Thus, our findings provide an observational estimate of the generation of eddy APE to identify the regional contributions in the climate simulations because it might be correct for the wrong reasons in the general circulation model (GCM). The largest positive contributions to the generation of transient eddy APE (GTE) are found to be at middle latitudes in the middle and upper tropospheres, where reside the strong local contributions to the baroclinic conversion from transient eddy APE to transient eddy kinetic energy and the resulting transient eddy kinetic energy.