In Tom Clancy's The Division, items are split into several categories of rarity and item types.
In general, Rarity indicates how rare a particular weapon, gear, or mod is. Usually the more rare an item is, it is guaranteed to have better stats and extra boosts.
There are 6 different item rarities each distinguishable by the color of the item icon background in The Division, which you can find in the game. The loot ranking is as follows (with Exotic being the highest):
|Rarity Level||Sound When Obtaining|
Besides normal items, there are Vanity items that are applicable to parts of your gear or weapon skin slots. These are not based on the aforementioned rarities because they have no stats and serve the only purpose to change your character’s appearance.
They appear as the color "Cyan".
Exotic items are weapons and gear items that are only obtainable from Mission Drops and Caches. Exotic items have a unique weapon talent, making them different than other weapons and gear pieces.