Some items, most notably equipable items, but also charms and jewels, can spawn in different quality levels.
Low Quality: Any low (Low Quality, Cracked, Crude, Damaged) Armor appears to have 75% of the normal defense (don’t forget that normal defense varies), rounded down, and low Weapons do 75% of their normal damage (mindam, maxdam), rounded down. Minimum damage is modified to 1 if it would be < 1 (e.g. a low Javelin has One-Hand Damage: 1 to 3 rather than the normal One-Hand Damage: 1 to 5). Both Armor and Weapons have their maximum durability degraded to [(normal durability – 1)/3], i.e. roughly 33%.
Normal
Rune Words: The most powerful items in the game are runewords. They were introduced with Patch 1.09. In function, the are like unique items, spawning with the same attributes from game to game. Also, it is worthy to note that some uniques are better than runewords: it is not to say that all are better.
Superior: Superior items have improved Defense, Durability, Attack Rating, or enhanced Damage.
Magic: The first items the player will come across of a higher quality are magic items. They have a few extra properties to them chosen at random when the item spawns. Prefixes and suffixes determine what extra properties the item will have. Magic items have a good chance of dropping and a player can increase that chance with other equipped items or charms, jewels and gems.
Rare: Like magic items, except they have more properties. Not nearly as common as magic items.
Set: Certain items belong to sets. As more items from the same set are equipped, more bonuses are given to the character, and when all set items have been gathered, a massive bonus is provided. Jewels and Charms cannot be set items. There are also so called class sets. Class set items are extremely rare.
Unique: These items are the most rare that can be dropped from monsters. Like the name suggests, they are unique, meaning that the odds that they will spawn more than once each game are nearly impossible, and they have fixed properties that stay the same regardless of when they spawn, but the same properties can go a few points up or down. A player can have more than one however.
Crafted: Crafted items are made by the player by using the Horadric Cube. They are mostly useful in Normal, as they are not nearly as powerful as Sets, Uniques and Runewords once the player reaches Nightmare and beyond.
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