Answers:
Mainly for what you've been doing between finishing high school and now. Explain what you've been doing, why the break was important/beneficial/necessary and how it helps you be a better XYZ College Student. If there are any financial reasons, it's very important to note that. The better you can explain the necessity of the break and how it's a good thing, the more likely it's going to be "excused". Be prepared to back it up--there's lots of loan sources and colleges will want to know why you didn't just apply for financial aid; or why you didn't just apply first and then see if financial aid could/would help.
All of this is still secondary to how you did in high school. While you have to explain this gap, there's still your SAT/ACT test scores, GPA, activities etc to consider. These are still a college's primary indicators of you, as a potential college student.
your SAT scores, your ACT scores, your GPA, community service hours, sometimes past jobs, teams you are on, your ethniciy(oh, the double standard!) and things like that. Really they just check the same stuff they would check if you were fresh out of high school.
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