We present a novel and comprehensive model of 1/f noise in nanoscale graphene devices that accounts for the unusual and so far unexplained experimental characteristics. We find that the noise power spectral density versus carrier concentration of single-layer sheet devices has a behavior characterized by a shape going from the M to the Λ type as the material inhomogeneity increases, whereas the shape becomes of V type in bilayer sheet devices for any inhomogeneity, or of M type at high carrier concentration. In single-layer nanoribbons, instead, the ratio of noise to resistance versus the latter quantity is approximately constant, whereas in the bilayer case it exhibits a linear decrease on a logarithmic scale as resistance increases and its limit for zero resistance equals the single-layer value. Noise at the Dirac point is much greater in single-layer than in bilayer devices and it increases with temperature. The origin of 1/f noise is attributed to the traps in the device and to their relaxation time dispersion. The coupling of trap charge fluctuations with the electrode current is computed according to the electrokinematics theorem, by taking into account their opposite effects on electrons and holes as well as the device inhomogeneities. The results agree well with experiments.