The Armour of the Skies was made by a rogue scientist from the Psijic Scientific Order in the middle of the Sixth Era. This scientist had left the Order, after disagreeing with the Arch Scientist.
He stole the Order's plans for a new type of armour, and modified the designs with more Dwemer-tech, so that it could withstand high altitudes. The armour was finished at an unknown time, but probably around 6E 100.
The armour was gifted to one of the greatest skypirates at the time, and since then it has been passed on as a symbolic gift to the greatest living skypirate to show his or her power and influence.
The armour is both artistic and functional. It has many steam gauges so that it can increase the user's mobility, and also it is made of a strong, light alloy of Dwarven metal and steel.
Any pirate who wears this armour has shown himself to be the greatest pirate of their time, and it is held in reverence by skypirates. In fact, it has almost religious significance attached to it.