Camouflage gear is a unique piece of clothing. It does not actually make you more resilient to anything, but instead helps you to hide from other players. While using camouflage gear you will look like a tree. Stand still next to a real tree and most players won't even notice you. However, held items are still visible so to achieve total stealth, do not hold any items.
This is very useful if you want to hide from enemy's, but you also use it to ambush them. Wait for your target to walk by and then jump out of your cover and surprise attack them.
You and people that are currently on your team will be able to see your name above your head, although others shall not be able to see it.