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Like a Souffle rising in the oven, the Flag module rose above its predecssor, the Drupal 5-based Views Bookmark module to expand the palette of flagging possibilities in the Drupal cookbook.
This module integrates well with various other Drupal modules including Views, Actions (part of Drupal core), Rules, and Token. It also has an API with limited documentation.
Flags can be global or per-user. Global flags are shared among all users - an example might be "flag as offensive". Per-user flags are not shared - an example might be a user "favorites list", where they flag their favorite content on the site and then a list of all their "favorites" is placed in a sidebar.
The Flag Weights module makes it possible to reorder flag in an arbitrary manner.
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