The last few years have seen enormous growth in the use of mobile internet devices with capable email clients, and it is now possible to include some mobile-specific styles to create email campaigns that read well on a smaller screen.
How does this work?
By creating a separate set of styles to be used by devices that recognize the @media query, you can optimize your emails in a similar fashion to how websites are optimized for iPhones and other mobiles today. Devices that don't recognize @media will just apply your default styles.
What kind of styles make sense for mobile email clients?
Using @media, you can create emails that adapt to the resolution they are viewed on, for example, by narrowing the line-length of paragraphs to make them more readable and prevent sideways-scrolling, or reducing the dimensions of images. For more information on how @media works, take a look at the W3C specification.
Adding a mobile stylesheet to your email
To declare your mobile stylesheet, use the following CSS within your style tags:
@media only screen and (max-device-width: 480px) { ... }
Where 480px is the width of a "flipped" iPhone's display. Within this declaration, you can define how elements within your HTML email will display on a mobile device, for example:
@media only screen and (max-device-width: 480px) {
body {
padding: 10px !important;
}
.container {
padding: 0px 10px 5px 10px !important;
}
.header {
font-size: 16px !important;
}
.headline {
font-size: 20px !important;
}
#screenshot_image {
width: 275px;
height: 190px;
}
}
Note the use of !important declaration to override any inline styles.
Examples
Using the stylesheet above, here's how an email would display in a desktop client:

Now, here's how the same email newsletter looks on a mobile device:

Notice how the headings and images have changed size to accommodate this smaller resolution. You can also use -webkit-text-size-adjust: none; to prevent handsets from automatically resizing your text.
Finally, as we're using the @media query to override any inline styles, it's better to start with inline styles for your standard formatting, and add your @media styles to the <head> section of your email.
When you import your campaign, be sure to uncheck "Move a copy of my CSS inline". That way your @media query will be left in the <head> of your code.