This is about the armor type Circlets. For the individual item, see Circlet.
Circlets are a special type of Helm, which can often come with boosts to skills, resists, cast rate, movement speed, and stats. As such, it is usually a good idea to pick up and identify even magic and rare circlets as they may have some excellent properties.
They also have a property of having a "hatless" look on a character, allowing players an option if they do not like the looks of their character while still retaining some stats.