Avatar

The Avatar in Shroud of the Avatar references the character you play in the game.

Overview
The Avatars are legendary figures, thought by some to be those who brought the Virtues to their ancestors, but as often considered mere myths to frighten children and make sense of the Fall. "Avatar" is a title given to those champions from another world by the native inhabitants of New Britannia. It is a title bearing as much mystery as it does dread, as the native Britannians have ancient legends that state the Avatars battled Gods and that their return would signal the end of the world.

Players will become Avatars upon entering New Britannia. Currently, little is known about the background and abilities of Avatars, except that death is not permanent for those who hail from Earth.

Ultima Reference
In the Richard Garriott's Ultima Series, the Avatar is a title that refers to one who has become and continually strives to be a paragon of the Virtues. While anyone could theoretically become an Avatar, only one (the player character) managed to do so during the main series games.

Etymology
The word Avatar is derived from the Sanskrit word avatāra/अवतार (descent). In Hinduism it refers to a deliberate descent of a deity to Earth, or a descent of the Supreme Being, and is mostly translated into English as "incarnation", but more accurately as "appearance" or "manifestation".