Most diamonds have natural identifying characteristics referred to as inclusions. Clarity describes the presence or absence of inclusions within the diamond. The less inclusions a diamond has, the more valuable it is.
It should be noted that many inclusions cannot be seen cannot by the naked eye. It is not possible, without the aid of a 10x microscope, to see the difference between an IF (internally flawless) diamond and a VS2 diamond but it is possible to see the inclusions in an SI2 quality diamond if you look carefully with the naked eye.