Hi Pranav,
A Boolean value that specifies whether sensitive HTML and XML characters should be escaped in the HTML output generated by this component. If you do not specify escape=”false”, the character escape sequence displays as written. Be aware that setting this value to “false” may be a security risk because it allows arbitrary content, including JavaScript, that could be used in a malicious manner.
By default, nearly all Visualforce tags escape the XSS-vulnerable characters. It is possible to disable this behavior by setting the optional attribute escape=”false”. For example, the following output is vulnerable to XSS attacks:
<apex:outputText escape=”false” value=”{!$CurrentPage.parameters.userInput}” />
Hope this help you
Thanks.