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Carnevale
The Carnevale is an annual event held in Venice, Italy. It is essentially a carnival unique to Venice where people wear masks.
Ezio obtains a mask and has his Plain Cape embroidered during this event to remain anonymous. It is during this event that Ezio retrieves the Golden Mask to gain entrance to Marco Barbarigo's personal party. It is in this party that Marco is assassinated.
Attire
During the Carnevale, Ezio wears a Carnevale Mask to remain anonymous. The mask makes you permanently anonymous and prevents increase in Notoriety. While the cape does not affect gameplay at all.