Equipment is any one or more items you choose to carry on yourself or others. These can be in various forms and serve several uses. Such examples are:
Weapons - Items such as staffs, lightsabres or blasters are equipment which can be placed in your primary slots and used to attack or defend from enemies.
Armour - It is possible to equip pieces of armour to reduce combat damage from enemy attacks. Examples of armour are things such as Stormtrooper Armour and Heavy Battle Helmet. These usually come in the form of equipment that can be equipped to one's chest or head.
Storage - These items can be equipped on your person and be used to store other kinds of items. Common examples of these are various different backpacks or tool belts.
Utilities - Other items serve a purpose and allow you to perform various actions. For example a Toolkit allows you to create and install door locks, Jetpacks allow you enhanced movement options, and Macro Binoculars allow you to see further.
Clothing - Items such as robes or pilot suits, allowing the character to wear a uniform or clothing style and roleplay somewhat.
The various types of items often need to be equipped onto a character in order to be used. For more details, see the article on Equipping Items, which will explain how to equip an item to a character or NPC.