EDS file stands for Electronic Data Sheet. The specification for this EDS, which is a plain ASCII text file, is described in the ODVA CIP specification. Every CIP device (DeviceNet, ControlNet, EtherNet/IP and CompoNet) has an EDS file which the device vendor submits to the ODVA at the time of registering the device at one of the accredited labs around the world.
The EDS file describes, in a syntax specified in the CIP specification, important characteristics of the device, including identity information (vendor ID, device type), communication parameters and information of the IO structure amongst others.
The purpose of the EDS file is for the system integrator to register the device in the PLC's engineering tool, so the tool has available the information described above. Some of this information is sent to the field device by the scanner at the moment of IO connection initialization, which is a CIP service called forward_open, but you do not need to worry too much about this, as this is taken care of by the engineering tool.
Normally for Rockwell PLCs with Rockwell IO and some other vendors the EDS is not a big deal, and many Rockwell devices can provide online its EDS file.
For non-Rockwell PLCs EDS file is extremely important (actually absolutely necessary) to be able to configure the remote IO device. Some tools use the information in the EDS file to create menus for configuration or online diagnostics.
It should go without saying this, but although it is relatively easy to change and EDS file this violates rules of ODVA, as a vendor of field device can only warranty the operation of its device with the EDS provided by the vendor, so end-users should not modify and EDS file.
Finally, for some non-Rockwell PLCs it may be a little difficult to configure some of the more complex Rockwell flexible remote IOs, because the available EDS files do not include the information about the connection. There is one post in which one of our members is trying to do this. Please let know if you are in this situation.