Fealty in the SCA is an oath sworn by peers of the realm to the Crown and Kingdom, represented by the person of the King and Queen. Often, Fealty may be sworn to other powers that be, such as a Prince or Princess, or an apprentice, squire, or protege might swear fealty to their peer.
In the SCA, all Knights are required to swear fealty to the Crown. Those who choose not to are still royal peers, but are called Masters at Arms instead. The other peers (Laurels and Pelicans) are given the right to swear fealty if they choose, and will be called the same thing regardless of their choice.
Fealty is generally indicated by the wearing of a plain chain of links either as a necklace, or a small linked chain under their perage badge. It is thus considered slightly out-of-place to wear such a plain chain if you are not a peer and have not sworn fealty.
Other random notes on fealty: