In Milne's text http://www.jmilne.org/math/CourseNotes/iAG.pdf (A71), he introduces the "variety of connected components" of a finite type scheme $X$ over $k$ as the universal example of a zero dimensional variety $\pi_0(X)$ with a map $X\rightarrow \pi_0(X)$. In particular, the fibers of the maps will be the connected components of $X$. (Milne's definition of a variety is a finite type $k$ scheme that is also geometrically reduced and separable.)
In particular, he claims that 1) $\pi_0(X)$ exists 2) the map $X\rightarrow \pi_0(X)$ commutes with extension of the base field 3) $\pi_0(X\times_k Y) = \pi_0(X)\times_k\pi_0(Y)$. This is used to show that a connected algebraic group is irreducible by allowing us to reduce to the case $k=\overline{k}$ by base change (after which our group would still be connected).
However, these facts are not obvious to me, and I wondered if there was a reference or an explanation.
Attempts: To approach 1) I thought above associating a field ${\rm Spec}K$ to each connected component of $X$. If $X$ is connected, here $K$ is the largest field, separated over $k$ with a map $K\rightarrow \Gamma(X,\mathscr{O}_X)$. (If you have two such fields, you can take the composite, so there's a unique maximal one.)
However, then 2) and 3) are not obvious. In particular, for 2), if I take an inseparable extension $L$ of $k$ and base change by that, $\pi_0(X)\times_k L$ might have points that aren't separable over $k$ (so not geometrically reduced), which means something went wrong.
If I assume that he meant for $\pi_0(X)$ to just be a scheme and not geometrically reduced, then I have to think of what the right nonreduced structure is, and I'm not sure how to do that.
Anyways, I think I spent more time on a small technical detail than I should have, and I should just ask for help.
This inspired me to slog through quite a few definitions, but I think the point is this: Being geometrically reduced is relative to the base field. Once we've passed to $L$, we no longer need to worry about elements inseparable over $k$, because we'll be doing our base changes with respect to $L$.
To make it crystal clear: if I take $k = \mathbb{F}_2 (t)$, $L = \mathbb{F}_2 (\sqrt{t})$, then $L$ is certainly not geometrically reduced over $k$, because $L\otimes_k L \cong L[T]/(T^2 - t) \cong L[T]/(T-\sqrt{t})^2$ is not reduced. But this problem disappears when we ask whether $L$ is geometrically reduced over itself, because $L\otimes_L L \cong L$ is perfectly well reduced.
This might also resolve your issues with 3). The basic point is a fibered product of geometrically reduced things is geometrically reduced, and a base change of something geometrically reduced is geometrically reduced.