From Tanki Online Wiki

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Each turret, hull, drone and module with protections can be upgraded.

Thanks to micro-upgrades, you don't need to wait until the next modification of an item becomes available, you can improve its stats step by step immediately.

When fully micro-upgraded, Mk1-Mk6 modifications of turrets, hulls and modules have equal parameters to their higher modifications. When you fully micro-upgrade an item, you will be able to get the next modification for free, if you have the required rank for that modification.

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Attention! If you have already achieved the rank required to unlock the next Mk-level of an item, you won't be able to micro-upgrade it. For example, if you're IconsNormal 11.png Warrant Officer 1 and have Thunder Mk2, you won't be able to upgrade Mk2, rather only have the option to buy the next Mk-level that is, Thunder Mk3.

In order to start this process, you need to select an item in your garage and click on the "Upgrade" button. One item can have several parameters that can be upgraded altogether. For both turrets and hulls, there are 10 upgrade steps for Mk1-Mk6, while Mk7 has 20 upgrade steps. Once the process of upgrading has started, installing the upgrade will take some time. However, you can always skip this waiting time by clicking on the "Speed up" button. Alternatively, the equipment can still be used while the upgrade is in progress.