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A diamond’s level of clarity depends upon both external and internal properties.
The internal properties are called inclusions. The most prevalent inclusions are:
These are mineral deposits trapped inside a diamond.
These are hazy areas commonly produced by crystals far too small to see under 10x magnification.
These are breaks or cracks within the diamond
The external properties, or surface irregularities, are called blemishes, for example a blemish could be a scratch on a diamond’s surface.
Obviously the fewer inclusions and blemishes that exist then the better the diamond clarity. These diamonds are scarcer which makes them much more valuable.

The clarity grades range from Flawless to Included 3. The Included 3 grade have blemishes and inclusions that even the human eye can detect and it is not advisable to buy such diamonds.
FL Diamonds
Flawless with no internal or external flaws.
Note: These are extremely rare and extremely beautiful diamonds.
IF Diamonds
Internally flawless however some external flaws.
Note: These are very rare and extremely beautiful diamonds.
VVS1, VVS2 Diamonds
Very, very slightly included and it is very difficult to see inclusions under 10x magnification.
Note: These diamonds are of excellent quality.
VS1, VS2 Diamonds
Very slightly included and inclusions are not typically visible to the unaided eye.
Note: These diamonds are beautiful but less expensive than the VVS1 or VVS2 grades.
SI1, SI2 Diamonds
Slightly Included and inclusions are visible under 10x magnification
Note: These diamonds are more affordable and unless studied under a magnifying class the inclusions will not be visible.