Changing the equipment and armor your characters wear and carry is reflected not only during gameplay, but also in cutscenes. There are two main types of armor: armor worn on the torso and armor worn on the legs. You can freely combine these as you wish, choosing from among many different types.
You can also remove parts from each piece of armor, further customizing its appearance. Removing parts does not change the armor's defensive value in any way, so you're free to experiment. You can even make dyes from certain items that can be used to change your armor's color (or turn it invisible altogether!).