The Diablo 2 Wiki
The Diablo 2 Wiki archive is available for anyone looking for information on Diablo 2. All information here is pre-D2R but contains a lot of useful information that is still relevant. Updated sections for new D2R features can be found on the PureDiablo Diablo 2 section


From Diablo 2 Wiki

Magic/Magical in Diablo II can mean one of the following:

Damage: Magical

Magic damage is the opposite of physical damage, where in some sort of spell or magic item is used to induce damage to a player or a monster.

Item Quality: Magic

Magical items are one quality level higher than Normal and can have at most one prefix and one suffix.

More information can be found on the item quality page. The magical quality levels are Normal, Magical, Rare, Set and Unique.