Camping
On the right of your Followers screen you will see what camping gear you have available.
You can pay to buy or upgrade your camping gear at any time.
If you have some camping gear, in areas where it's sensible to do so, the Camping button will become active on your main screen (i.e. not in cities; you'd be a target for robbers or the Skyguard).
You can set up camp just to have a short picnic or rest to relax, or to spend the night away from home, or to prepare some food that you've caught, or do some simple crafting. It takes 18 mins to set up camp, 18 mins to pack it up again, and having a short break takes just 30 mins (plus set-up and pack-down).
Camp Level 1
A tent, cooking gear, rope, and two big bags for carrying water and rations.
Cost of gear: $400
End day command (i.e. camp overnight): Yes, but -2 Stamina Points lost.
Relax command (i.e. short rest): Yes, +2 Stamina Points recovered.
Crafting possible: Prepare Meat, Prepare Skins.
Camp Level 2:
A cozy pavilion, basic furniture, six large bags for water and provisions, digging equipment, and two mules to carry it all!
Cost of gear: $1,900
End day command (i.e. camp overnight): Yes, and +1 Stamina Point recovered.
Relax command (i.e. short rest): Yes, +4 Stamina Points recovered and +1 Health.
Crafting possible: Prepare Meat, Prepare Skins, Repair work, Crafting simple items.