This skullcap, which is made out of cloth, is called a kippa in Hebrew or a yarmulke in Yiddish. According to tradition, the reason for the practice of always covering the head is that wearing a head covering serves as a constant reminder that God is above us.
Often the color and fabric of the kippah can be a sign of adherence to a specific religious movement. Knitted or crocheted kippot, known as kippot serugot, tend to be worn by Religious Zionists and the Modern Orthodox, who also wear suede or leather kippot.