This function is initiated via the Team > Add to svn:ignore menu option.
You can choose to let SVN ignore certain resources (files or folders) in your working copy, such as derived files (e.g. .class files compiled from Java source) and other files that do not belong under version control. By ignoring them, SVN doesn't mark them as unknown, and they no longer appear in the Synchronize View.
To ignore specific resources, select the file(s) and/or folder(s) you wish to ignore, and choose Add to svn:ignore in the Team menu. This will bring up a selection where you may choose how to ignore the file:
When in doubt, choose the first option, Resource(s) by name, since that will never ignore a resource that wasn't explicitly selected.