The formation of the labyrinth layer is a critical step of placental development. The transcription factor glial cells missing 1 (Gcm1) plays a pivotal role in labyrinth development, but the sequence of events controlling its expression has not been identified yet. Our studies presented herein show that Gcm1 expression occurs in three distinct phases during placental development, each specific to a particular stage of chorio-allantois interaction. In the first, the pre-fusion phase, Gcm1 mRNA is expressed in isolated clusters of chorionic cells, but not efficiently translated. Upon allantois-chorion fusion, the second phase, Gcm1 expression is greatly induced in clusters of chorionic cells separated by non-expressing cells and the Gcm1 mRNA is translated to protein. In the third phase, the labyrinth formation, cells expressing Gcm1 proliferate, involute in the chorionic plate and branched villi formation begins.