These post are from another site.  The last one is by ReelMech, a good Reel Repairman.

The Quantum Hot Sauce has worked well for me, but it is has a low viscosity and will require you to flush and relube fairly frequently, especially on the bearings related to the spool shaft that see the most use and the most rpm's.  I flush and relube about every 6 weeks.

The one that comes in the box with your reel.  
There are a lot of different oils on the market, it is usually personal preference, price, and hype that can be confusing. As for the best any quality reel oil will work, the key word though is quality.
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Oils don't last that long as they can be rinsed out of important friction points on the reel/s (especially on the outside of the reel). How often depends on how much use the reel/s gets. If the reel/s is fished heavily, then every 4-5 outings with complete break downs and re-lubes once a season. As far as residues left behind all grease and oil will, there fore the need to clean the reel/s before each re-lubing session. The only oils and greases that I know of that leave nasty residues behind is the Quantum Hot Sauce. The red coloring left behind is from the red dye that is used in the oil and grease, it stains the metal parts..

Cook is right,the more you do,the better you get,but let`s not start with your best reel.....Find a cheap Spinning Reel,because most  Spinning Reel`s are put together the same,it`s just the quality of the part`s that are differant Stick with the simple Spinner`s until you get comfortable fooling with em,Bait-Runner`s can get a bit tricky

I tare mine down,soak and wash each part in Soap&Water,then set each part on a Shop-Rag,then I use the same Waterproof Grease as I use on my Trailer Bearing`s to coat each part as it goes back together,before I put the Cover back on,I use a splash of A/C Compresser Oil....Pag 46{keep`s Rust Down}

It`s just like Cleaning your Rifle,bunch of small part`s to clean,lube,and Reasemble,you just have to remember in what order you take them off,and putting them on a rag as in order as you tare it down will help you remember. There are not that many piece`s,and the only Spring is usualy for the Clicker,try to clean that without taking it apart

You can do it Vlap,I got faith in ya

Not Just Another Cracker !