This episode explains the world the story takes place in and briefly reiterates the central plot of the series that was introduced in the previous episode. It's the Gundams' first armed intervention and it immediately becomes apparent just how advanced they are compared to the so-called "modern" mechs. You might feel overwhelmed by the number of characters introduced in this episode but don't worry, the important ones will be properly introduced as the series progresses. Both the OP and ED are absolute bangers and I didn't notice any inconsistencies in the animation all throughout the episode.

P.S. The timeline of this Gundam series takes place on Anno Domini (AD) timeline so it doesn't have any connection to any of the past Gundam series