Occupations are a type of job, if you will, you can take. An occupation from what is currently known allows you to create all sorts of items, which mostly aid in helping regenerate an attribute of the player character. At any given time you can not take on more than three occupations and there is a two day cooldown before you can drop an occupation. In the event that you drop an occupation, the experience you had in that occupation will remain should you ever choose to take that occupation on again.
At the moment there are 8 occupations in game, and it seems 4 of them are much easier and start out in the level 50 regions, while the other 4 are much harder and involve going into the Kitins' Lair right from the start.
Occupations yield certain items which aid regeneration when consumed, among other things... Read more.