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Repair is passively used to determine the number of hit points that are regained at rest shrines. When resting the highest Repair skill of any nearby ally is used (thus, it is helpful for a Wizard, Rogue, or other high-Intelligence character to stand nearby when a Warforged is resting).
The exact formula is slightly different from the Heal skill: it does not take the character's level in consideration. The formula is: 10 + (3 * [maximum score in repair of a nearby party member])[official] (confirmed by developer David Eckelberry - link to post dead).
Note that contrary to what is stated on the character creation screen, the repair skill cannot currently be used to repair your own equipment. However, this is something developers are planning to add in a future update.[official]