Cellophane, often called “cello” in shops, is the thin clear sleeve around an individual cigar. It protects the wrapper from fingers, scuffs, and knocks in a shop display case or a pocket, and keeps single cigars neat. True cellophane is made from cellulose; many modern sleeves are made of plastic films that look very similar.
A sleeve slows down the exchange of air and moisture, but it does not seal the cigar off from the air in its humidor. You can store cigars with or without the cello. Without it, they adjust to the humidor’s relative humidity more quickly; with it, they are better protected from handling. Over the years the sleeve can turn yellow, and some collectors take an amber sleeve as a sign of age. This is a rough indication, not a reliable date.
Remove the sleeve before lighting. It is packaging, not part of the cigar, and it is not the same as the band.