Changing the equipment and armour your characters wear and carry is reflected not only during gameplay, but also in cutscenes.
There are two main types of armour - armour worn on the torso and armour worn on the legs. You can freely combine lots of different types.
You can also remove parts from each piece of armour, further customising its appearance. Removing parts does not change its defensive value, so you are free to experiment. You can also make dyes from certain items that can then be used to change the colour of your armour.