All uniforms, by definition, identify groups of people but deny individuality.
In Gilead, all its citizens, including Marthas, Wives, Handmaids and Commanders, are all given uniforms to wear. These groups of people also have a set of rules and regulations that they must follow at all times, under threat of extreme punishment, so in effect, the group they are a part of, which is identified by the uniform they wear, dictates how they must behave and what they are allowed to do.
There is a detailed description of the Handmaid's uniform on page 96 (Vintage, '96 edition). Each item of clothing has a particular function; for instance, the headdress is 'to keep us from seeing, but also from being seen.'
The overall effect of the Handmaid's habit is that of a 'Sister, dipped in blood.' This is a particularly powerful image, as it reminds us of the religious influence and importance within the novel, but also that something is not quite right. The reference to the blood could be a representation of the threat of violence that all of Gilead's citizens are under if they behave incorrectly. This could also be an indirect referral to the importance of the menstrual cycle to the Handmaid's lives.

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Overview of some of the key contextual factors within Margaret Atwood's novel, The Handmaid's Tale.