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IP stands for International Protection and the following two digits define the level of that protection.
The first digit denotes it's protection against the ingress of solid foreign objects.
In most of our cases it is typically IP6x, which means that the item is protected against dust (and anything larger)
The second digit denotes it's protection against the ingress of liquids.
They range from 0 which means there is no protection, through to 8 which means the item can be continuously submerged.
Again, in most of our cases, the second digit will be IPx5 which means that the item is protected against 'Water projected by a nozzle (6.3mm) against enclosure from any direction shall have no harmful effects.
Therefore, if a component has an IP65 rating it is suitable for outdoor use, particularly if it is housed inside a sign box (for example)