Rsyslog is more advanced version of the grand old syslog. The facility code denotes which system is logging the message.
Facility codes are specified in RFC 5424:
Numerical Facility
Code
0 kernel messages
1 user-level messages
2 mail system
3 system daemons
4 security/authorization messages
5 messages generated internally by syslogd
6 line printer subsystem
7 network news subsystem
8 UUCP subsystem
9 clock daemon
10 security/authorization messages
11 FTP daemon
12 NTP subsystem
13 log audit
14 log alert
15 clock daemon (note 2)
16 local use 0 (local0)
17 local use 1 (local1)
18 local use 2 (local2)
19 local use 3 (local3)
20 local use 4 (local4)
21 local use 5 (local5)
22 local use 6 (local6)
23 local use 7 (local7)
Not all facilities are available in all implementations.
daemon
is a catch-all, it facilitates logging for otherwise unspecified sources. For example it would be used to facilitate handling syslog messages from an application you wrote yourself.