PODS are external pieces of equipment which can be attached to a players ship. Pods modify a ships capabilities, create certain resources, or have military functions. Pods come in various types, and levels. Generally a higher level Pod will provide higher benefits.
Some Pod types are:
Aurora pods 1-4: reduce damage from Expanse Alien weapons;
Babylon pods 1-4: increase a miners Scan Rate, enabling you to find better ores;
Daedulus Armor pods 1-4: increase Armor, Hull, Speed;
Midas pods 1-4: create Omega repair drones while you are docked;
Minos pods 1-4: teleport your cargo stores directly to a planetary CS without docking;
Messiah Turrets 1-6: increase damage of your primary weapon in combat;
Seraphim pods 1-4: increase the number of planetary explorations you can do daily;
Trinity device 1-4: increase Energy, Cargo, Speed;
VP replicators (11 types): create special resources from your fuel while docked;
Additional pods are added to the game occasionally.
Pods are unique because they do not require IP skill points, or certain levels in skills, to be used. Your Captain Level determines which Pods you can use. Pods can be obtained in various ways: some through the CE online store; through the Players Market; through trade/purchase with another player; or build your own by buying the blueprints.
(Note: requires a Premium Account in order to build them).