A pivoting bit holder is effectively what it says right on the label: It’s a bit holder that has the ability to pivot at different angles. It’s a similar concept to a right-angle drill bit holder but with much more flexibility. You just insert the hex shank into the front of a power drill or impact driver, the same as you would any ordinary drill bit, then stick a drill bit into the tip of the bit holder. Between the front and back of the holder is a pivoting joint, usually locked in place by a small button.
Just unlock the joint and angle it to your ideal orientation, and you can use your drill as you normally would. A pivoting bit holder is equipped with a special barrel between the shank and the tip that transfers rotational power from your drill’s engine into the bit, so you shouldn’t lose noticeable rotational power, even at weird angles. Depending on the strength of the pivoting holder, you can use it with both regular power drills and impact drivers, with the holder engineered to withstand the powerful force from both.