I'm studying Steenrod operations from Hatcher's book. Like homology, one can use them only knowing the axioms, without caring for the actual construction. But while there are plenty of intuitive reasons to introduce homology, I cannot find any for the Steenrod operations. I can follow the steps in the proofs given by Hatcher, but I don't understand why one introduces all these spaces like $\Lambda X$, $\Gamma X$ and so on (in Hatcher's notation, I don't know if it's universal). Does anyone know how to get an intuitive grasp of what's going on?
Steenrod operations are an example of what's known as a power operation.  Power operations result from the fact that cup product is "commutative, but not too commutative".  The operations come from a "refinement" of the operation of taking $p$th powers (squares if $p=2$), whose construction rests on this funny version of commutativity.

A cohomology class on $X$ amounts to a map $a: X\to R$, where $R = \prod_{n\geq0} K(F_2,n)$.  So the cup product of $a$ and $b$ is given by
$$X\times X \to R\times R \xrightarrow{\mu} R.$$
In other words, the space $R$ carries a product, which encodes cup product.  (There is another product on $R$ which encodes addition of cohomology classes.)

You might expect, since cup product is associative and commutative, that if you take the $n$th power of a cohomology class, you get a cohomology class on the quotient $X^n/\Sigma_n$, where $\Sigma_n$ is the symmetric group, i.e., 
$$X^n \xrightarrow{a^n} R^n \rightarrow R$$
should factor through the quotient $X^n/\Sigma_n$.  This isn't quite right, because cup product is really only commutative up to infinitely many homotopies (i.e., it is an "E-infinity structure" on $R$).   This means there is  a contractible space $E(n)$ with a free action of $\Sigma_n$, and a product map:
$$\mu_n' : E(n)\times R^n\to R$$
which is $\Sigma_n$ invariant, so it factors through $(E(n)\times R^n)/\Sigma_n$.  Thus, given $a: X\to R$, you get
$$P'(a): (E(n)\times X^n)/\Sigma_n \to (E(n)\times R^n)/\Sigma_n \to R.$$
If you restrict to the diagonal copy of $X$ in $X^n$, you get a map
$$P(a):E(n)/\Sigma_n \times X\to R.$$

If $n=2$, then $E(2)/\Sigma_2$ is what Hatcher seems to call $L^\infty$; it is the infinite real proj. space $RP^\infty$.  So $P(a)$ represents an element
in $H^* RP^\infty \times X \approx H^*X[x]$; the coefficients of this polynomial in $x$ are the Steenrod operations on $a$.

Other cohomology theories have power operations (for K-theory, these are the Adams operations).

You can also describe the steenrod squares directly on the chain level: the account in the book by Steenrod and Epstein is the best place to find the chain level description.
