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I installed Arc Gis 10 on my laptop, but I am going to upgrade it to Arc Gis 10.1. Could you plz tell me what should I do?

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Esri's installation guide can be found here:

http://resources.arcgis.com/en/help/quick-start-guides/10.1/

They recommend removing 10 first, then Loading 10.1 from disk or download file,once the installer starts it runs fairly smoothly and doesn't need much interaction to install.

You do need the activation code for which you should have received an email from ESRI

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