I want to know several things.
1 How do you determine what trait the offspring is going to end up with? (Like if one parent has kelp armor and the other has pearl)
2 Does either gender have a better chance of passing on certain genes? If so which one?

I am trying to start a breeding project and this is useful information :P

A quick explanation of trait heredity-
Kelp Armor (AA) and Pearl Armor (BB) are both in the same slot (Mutation 1). Since A is closer to the start of the alphabet than B, Kelp Armor is dominant to Pearl Armor, which means Kelp Armor will (if both parents are vis) be the visible trait, and Pearl Armor will be a hidden trait (a trait that is hidden underneath a dominant gene but can still be passed on through heredity).
I hope this helped in some way!

Additionally, Sylestia uses 'punnet square' genetics, so to say- so no one parent is 'more likely' to pass on anything than the other parent. The system takes, each trait from each parent and has four different ways they could end up combining (M First letter x F first letter/ M 1st x F 2nd/ M 2nd x F 1st/ M 2nd x F 2nd,) repeating for each trait. As was said by Dragonnadder, the closer to the start of the alphabet, the more dominant, excepting 'N', which is 'no trait', and the 'most dominant'.
We answered an FAQ on hidden traits you can look at here which explains it more clearly.

There are also some assorted breeding guides (for 6-vis/max stats and such) in the Player Guides forum

Thank you so much for the help!

Of course!