The Continuum 101 by Mac

Camouflage is a passive, characteristic ability which beefs up your DF (defense factor). Maxed out it can boost a unit's DF by a healthy 45 points. Pair this with lots of the core stats, CON and WIL, and you've got a ultra-tough unit to kill.

This passive trait is much more useful on units with zero, or one, armor option available. You get more DF for the AP if you max out another armor. If you notice, you can get more DF from purchasing another armor ability (not until level 3 though). If you have the 3 AP to spare, you get an extra +10 DF from a level 3 armor upgrade (Armor 3 is +30 DF, Camo 3 is +20 DF). Plus, you can have the option of equipping two types of armor.

Camouflage 1	Dead-Hunter - Lvl 1
+5 DF	Elfin Sentinel - Lvl 4
	Gypsy Bantam - Lvl 5
	Kherr Alpha - Lvl 10
	Kherr Outcast - Lvl 1
	Legion Spy - Lvl 5

Camouflage 2	Dead-Hunter - Lvl 3
+12 DF	Elfin Sentinel - Lvl 6
	Gypsy Bantam - Lvl 8
	Kherr Alpha - Lvl 12
	Kherr Outcast - Lvl 3
	Legion Spy - Lvl 7

Camouflage 3	Dead-Hunter - Lvl 5
+20 DF	Elfin Sentinel - Lvl 8
	Gypsy Bantam - Lvl 11
	Kherr Alpha - Lvl 14
	Kherr Outcast - Lvl 5
	Legion Spy - Lvl 9

Camouflage 4	Dead-Hunter - Lvl 7
+30 DF	Elfin Sentinel - Lvl 10
	Gypsy Bantam - Lvl 14
	Kherr Alpha - Lvl 16
	Kherr Outcast - Lvl 7
	Legion Spy - Lvl 11

Camouflage 5	Dead-Hunter - Lvl 9
+45 DF	Elfin Sentinel - Lvl 12
	Gypsy Bantam - Lvl 17
	Kherr Alpha - Lvl 18
	Kherr Outcast - Lvl 9
	Legion Spy - Lvl 13