In ESO you can pick up different disguises and some of them look really nice. You wear them as a separate piece, so I wonder if they affect your armor rating.
Disguises and costumes (as well as the upcoming guild tabbards) are all cosmetics only (i.e. they don't have any influence on your stats), with slightly different behavior:
- Tabbards are permanent (till you unequip them) and help you showing your membership in a guild (will be introduced with version 1.3 some time soon).
- Disguises allow you to make some hostile NPCs neutral towards you and they might allow you to use passages otherwise locked, e.g. to sneak into bandit camps and similar. Whenever you receive any damage, they're removed (and the equipped item is destroyed).
- Costumes work similar to disguises, but they won't disappear if you're hit, meaning that you're able to keep them equipped while in combat.
Note that the naming ingame isn't very consistent. Most quest disguises will disappear once you're hit in combat, while some of those are permanent (e.g. the disguise obtained on Stros M'Kai).