If this bit is set, the item has been "locked" by the user and cannot be deleted. You may want to represent this visually with a "lock" icon.
If this bit is set, the item has a Masterwork plug inserted. This usually coincides with having a special "glowing" effect applied to the item's icon.
If this bit is set, the item is a quest that's being tracked by the user. You may want a visual indicator to show that this is a tracked quest.
A flags enumeration/bitmask where each bit represents a different possible state that the item can be in that may effect how the item is displayed to the user and what actions can be performed against it.
This enum represents a set of flags - use bitwise operators to check which of these match your value.