Unidentified items are special drops you can get with neat enchantments. They may or may not contain socket enhancement abilities as well. The stats that they have, however, are unidentified because of a curse placed on them so you’ll need to find a way to lift that curse.
What do they look like? Well they look like a normal armor or weapon, usually with a lot of damage. When you hover your mouse over them in your inventory you’ll see magic, scrolling letters and symbols that never seem to stop moving.
To lift the curse on these special items you’ll need an Indentify Tome. These can be purchased in downtown Valeria Beach or also crafted with 3 books an eye of ender on a crafting table. Hold the Indentify Tome in your hand while having the unidentified item in your inventory and right click. This will identify the first item you have in your inventory/hotbar. The tome will disappear with its use. Then you can see all of the stats the item has to offer!
Where can I find unidentified items?
These items can be found by mob drops, especially in Dark Cavern or dungeons. You also can trade these with other players so you might want to check the Global Market.