Gear up your Battleborn by opening loot packs! Pick up Loot Packs in Story Missions or purchase them using Credits earned by playing Story Missions or Competitive matches. The contents of a loot pack is random and unique to each player, but when one player picks up a loot pack, each party member gets one as well – so no need to fight your team over them!
Gear that you equip can modify various stats and give you a wide range of possibilities. There is Gear that will boost your common stats like more health, shield amount, attack power, shield recharge rate, etc. There is also Gear which grants you special Abilities, which will do things like dropping a grenade when you die. Lastly there is also Gear which boosts your Shards income rate, making it easier to activate other Gear (or to build Structures). Gear in Battleborn is procedurally generated giving you almost an endless amount of capabilities and encounter a lot of varieties.
The whole Gear system is pretty cool, because whether you're in PvP or PvE, you get chances to find these Loot Packs and these loot packs all get stored within your Command Screen in the main menu. So when you go to that, you have this list of stuff that you found or you can also, just through playing regular matches, you'll be earning Credits, so you can purchase loot packs with those credits. Those loot packs, once you open them up, and there's going to be a random chance that it'll be a Rare thing or Common thing and those will be similar to Borderlands, where you'll have your greens, and purples, or blues. You'll see the rarities change. And depending on what you're doing, like let's just say you're in the Campaign and you're taking on this really tough boss, there's going to be a higher chance that the boss will drop a loot pack that has a higher chance of coming up with a purple.
Once you open all those packs, you'll have this big list of gear that you have and you can go through and figure out exactly which ones you really like, which ones will do best for you depending on PvP or PvE, and assign them to different Loadouts. And when you go into your matches, you can select those loadouts on the fly. So it's pretty cool, because you set up different ones for a PvP match, so you might need stuff geared towards keeping you alive, or a more straightforward one for PvE matches. It's actually a pretty robust system and we're still finding all the crazy combinations you can do once you start digging into those loot packs. It's... kind of hellish to test, actually. 
How To Get Gear
Gear packs are dropped by bosses and can be found by opening chests in Story Mode. They can also be purchased in the in-game Marketplace using earned Credits. When one team member picks up a Gear pack, everyone on the team gets the pack.
→ At the start screen, select Command and then select the Gear tab to open Gear packs and explore your Gear.
Once you’ve opened some Gear packs, you’ll be able to create Loadouts that will be used during episodes and matches. Drag and drop Gear into the Loadout to set up collections, and be sure to save your Loadouts. After selecting a Character to play in either Story Mode or Competitive Multiplayer Mode, you will have the option to select one Loadout from the Loadouts you created previously. Your Loadout is now equipped for that match or episode.
Rare Loot Pack - Contains 2-3 pieces of Gear.
Rare Loot Pack - Contains 2-3 pieces of Gear, with one guaranteed Uncommon.
Rare Loot Pack - Contains 3-4 pieces of Gear, with one guaranteed Rare and one guaranteed Uncommon.
Epic Loot Pack - Contains 4-5 pieces of Gear, with one guaranteed Epic and one guaranteed Uncommon.