The mammalian diving reflex is activated when the nerves in the face come into contact with water, most effectively with cold water... First, the heartbeat slows; if you were to put your face into a sink of cold water for thirty seconds, your heart would slow too. Under pressures of depth, blood withdraws from the arms and legs and concentrates in the chest. This is called the blood shift. Meanwhile, the lungs compress, halving themselves after ten metres, then reducing by degrees until, by a hundred metres, they are something like the size of a fist; free diving is the only sport in which the lungs shrink and the heart slows. The blood shift prevents the chest from collapsing. In theory, however, a depth could be reached after which the chest became so compressed that the heart could no longer function... Shrunken lungs give a diver a sense of having plenty of oxygen... As a diver returns toward the surface, his lungs expand, more oxygen is consumed, and suddenly he feels as if he hasn't got enough to reach the surface. He might feel that he needs to breath, then suffer convulsions and black out... For someone holding his breath, the urge to breathe comes not from a lack of oxygen but from the accumulation of carbon dioxide in the blood as oxygen is used.
Here's a video of Martin Stepanek starting and returning from his record setting dive to 122 meters:








