The Health Indicator implies how many hit-points that the player's character or vehicle has left. While Warhawk had dropped packs and pick-ups to regain health, Starhawk will feature a regenerative health system, where if the player avoids taking damage for a set period of time the health will regenerate. Instead of a life-bar, the screen around the player will start to turn red (blue for outcast) and become a deeper shade if the player takes more and more damage, bringing them closer to death. It is not known at this time how fast health regenerates, or if there are other ways of regain health via health pick-ups or a bio-field like weapon.
This is for infantry. Vehicles have a similar health indicator, being broken glass instead of a red blood-like color around the vehicle. However, vehicles are repaired instead of regenerating health with the repair tool.