As it currently stands in Crowfall, you are not the character that’s marching around. You are a little shining blue crow, which is what you start as before you select a specific avatar and customize it. That’s just your meat-puppet that you ride around in. Technically speaking, the game’s new form of character creation doesn’t change that fact, as you are still at the core a flying little spirit crow. But the game is adding in the Crypt to choose between your different avatars, and those will now serve as a more proper set of characters.
Rather than players respawning and re-selecting their avatars, the new system allows you to unlock vessels permanently as specific characters in your library, with your game experience starting in your first (and likely primary) avatar. Finding Crypts allows you to swap between your different vessels at will, as your account-wide progression remains the same no matter how often you swap between them. Check out the full overview for both lore and mechanics on the official site, which should provide an interesting cooperation between the lore side of the game and the mechanical one.