The name of the item is color-coded, based on your level relative to the level of the object
Repairing an item will use one durability for each point of condition lost, plus one for the repair itself. Many items (especially higher end items) have durability above 100 Aika gold, so you may be able to repair it several times before it shows visible durability loss. The quality of an item never changes.
Object Information: Right-clicking on any item (whether in your inventory, a trade window, a store, etc.) shows you information about the item. The speed and damage for weapons, the absorption and armor factor of armor. The name of the item is color-coded, based on your level relative to the level of the object:
Gray - Too weak for you to be using, will decay very slowly
Green - Well below your level, will decay slowly
Blue - Below your level, but close; will decay slowly
Yellow - Optimal; at some levels it you may cap just below its maximum
Orange - Above your skill level, and will decay faster
Red - Far above your skill level, will decay faster
Purple - Well beyond your skill level, the item will decay very rapidly
Dye merchants sell dye (for cloth and cloaks), leather dye (for leather), and enamel (for studded, chain and plate) and each piece of your armor may be tinted individually.
In addition to the store-bought dyes, there are unique dyes that can be crafted by an Alchemist, and applied to any armor and most cloaks.