Washing of Dirt in water causes it to dissolve immersively. Depending on the type of dirt it might clean faster like dirt and dust or take longer like ink or burn marks.
These armors and weapons have the same amount of blood on them but look different. Each piece of gear has its own seed.
Natural loot tables can have dirty tools, armor or food depending on where they are. A chests in a Dessert-Biome might have sand on the food.
Mobs can spawn with dirty armor and tools, also depending on biome
Expect to get dirty when you are surrounded by stone, sand, etc.
More damage means bigger pool of blood
Stepping in blood lets (only player as of now) players leave footprints behind for a short while.
Is not recommended. But don't worry the 3 second rule will probably be good enough.

Adds all kinds of dynamic, realistic dirt, gore, and rust overlays to all your tools and armor.