The Mark 27 (also known by its name as "Disco"), is a Chameleon Suit, and was one of several new Iron Man Armors created by Tony Stark as part of the Iron Legion. The armor was created sometime after the Battle of New York.
It was featured in the movie Iron Man 3, and made it"s debut in the movie when Tony ordered J.A.R.V.I.S. to initiate the "House Party Protocol", in which it was activated along with all the other suits to aid Tony in his battle against Aldrich Killian.
The suit earned it"s name "Disco", because of it"s colorful blue and orange color scheme, that makes it resemble the colorful lights on a real disco ball, as well as the blending abilities of a real "Chameleon", and is where the suit"s specialty is derived from.
The reason the suit is colored blue with orange platings, is because it has a special stealth system that enables it to blend in with the environment, like a real chameleon does, and boosting the ability to do so with it"s unique color scheme. [Source: wikia]
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