This is basically your backpack and your pockets, all in one. Your Inventory holds everything you are carrying, with the exception of equipped items.

You can sell items from here, send the to the Clan Inventory, delete them or Use them.

NOTE: If you have a weapon or armor here and you Use it, you will start an attack. This will also equip that weapon, so you will not find it here anymore, but it will be in the Equipped section.