There are 7 elements to the Character Creation screen.
Once all the elements are to your liking, click Create to spawn this character in your Ship. New characters start at Level 1 with each stat at 2 (plus Race bonuses). If you change your mind and decide that you don't want a new character, the Back button will take you to Character Selection.
There are currently 30 races available. Each race has different stat combinations, and some start off with different starting items. Race stats are added to your character's initial stats on character creation, and you gain another stack of them every time you gain a level that is a multiple of 3 (up through level 99).
The Wanderer race is unlocked from the beginning with the rest of them being unlocked through gameplay objectives.
Variants are different cosmetic effects for the races of the game. Each one is unlocked by fulfilling its race's unlock requirements again (yes, this means you have to use 3 Lightsworn Crystals in total to unlock all variants of Lightsworn). There are currently 3 variants for each race, including the initial variants unlocked when each race is unlocked.
There are 24 uniforms available. Each uniform after the Fleet Cadet uniform provides a unique permanent benefit (or detriment) to your character. Uniforms are only visible while the character does not have Armor equipped.
There are 24 augments available, including the initial augment, None. The majority of augments provide a unique permanent benefit (or detriment) to your character. Augments are only visible while the character does not have a Helm equipped.
Stat Selection is where you define your character's class. You will need to choose two different base stats during character creation. The stats you choose will affect what happens when your character levels up. See Character Stats for a detailed explanation of character statistics.
There are two options, Standard and Ironman. On the character selection screen, Standard characters have silver borders on their portraits while Ironman characters have gold borders on their portraits.
Ironman mode disables multiplayer and chest storage (all other Ship objects remain usable). Attempting to access storage on an Ironman character will produce a message in red text: "You are an Ironman!" Also, the Host Server and Connect to Server buttons do nothing if you click on them after selecting an Ironman character.
Seven Uniforms and two Augments can only be unlocked by Ironman characters (an eighth uniform, not yet obtainable, is also Ironman-exclusive). Everything else can be unlocked regardless of the chosen difficulty.