Good old water, aka H2O. The most common skincare ingredient of all. You can usually find it right in the very first spot of the ingredient list, meaning it’s the biggest thing out of all the stuff that makes up the product.
It’s mainly a solvent for ingredients that do not like to dissolve in oils but rather in water.
Once inside the skin, it hydrates, but not from the outside - putting pure water on the skin (hello long baths!) is drying.
One more thing: the water used in cosmetics is purified and deionized (it means that almost all of the mineral ions inside it is removed). Like this, the products can stay more stable over time.