[1] It is essential for him to be prepared......................................[version with extraposition]
[2] For him to be prepared is essential.........................................[basic version]
In simple terms, "it" doesn't refer to anything.
[1] is an Extraposition construction and [2] is the basic (non-extraposed version).
In Extraposition the it is a dummy element serving the syntactic purpose of filling the subject position; the extraposed element doesn’t give the meaning (reference) of it but serves simply as a semantic argument of the VP.