You will be choosing items for you based on ratings, but you should notice that better the item is the higher quality it have or higher level.
Item qualities are indicated by borders around item icon:
Dark Gold: items with junk quality
Gold: quest items
Violet: epic, legendary
Item level is marked as a number before the name, like +4 Sword, items with higher levels will have better stats.
There are some other marks on items:
Number in bottom right corner of icon indicates how many items you have, you can have maximum 99 items in one stack
"NEW" in top right corner means that item was recently picked up
Exclamation mark in bottom right corner mean you will get new quest after using the item
Padlock in bottom left corner of item's icon mean it can't be used yet (you have too low level etc)
Additional golden border means the item is recommended to wear
Question mark in bottom right corner of item's icon means unidentified item
Little squared on the left side of icon means it can be upgraded with enchantments
Red icon means item usable by another class
+NUMBER on the right side of an iconpo indicates item level