The Camping skill is used to logout safely when out in the wilderness. It is almost never used, as even new players logout at a tavern or inn, and so is considered somewhat of a Useless Skill.
In order to create a camp, you require some kindling and a bedroll. Use the kindling to attempt to ignite it. Once done, in about 30 seconds or so, you - and anyone near near you - will receive a message that the camp has been made secure. Anyone who gets the message (not just the person who created the camp) may then use a bedroll to log out instantly by placing it on the ground, unrolling it by double-clicking it, then double-clicking again to receieve a logout confirmation gump.
Unlike logging out at a tavern, inn or player home, logging out successfully with the Camping skill will merely display a Connection Lost message instead of returning the player to the Login screen.
You may hide while the camp is being made secure, and log out while still invisible. Some areas of the game world (such as Doom and woods of Ter Mur) cannot be camped in, but otherwise the skill can be used any time - Even if your character is flagged for combat.