When your character dies, you will lose all of the items you possess in your current inventory. You would lose the items in your exosuit while on foot or ship while flying. After you have respawned, there will be an icon on your HUD that will lead you to your grave so you may recover your lost items.
As stated in the No Man's Sky: Next release log, you have the ability to prey on other players to survive. If I were join a multiple session and were to killed by another player, would that said player have the ability loot my grave before I have the chance to recover my items? If yes, would they recover all my lost items or would they obtain general items as when fending off pirates?