The first thing you need to do when creating a new character is to decide what character Class you want to be. There are 5 different Classes in Lineage: Wizard, Knight, Elf, Dark Elf, Prince/Princess. There is a Male and Female for each class, and thus there are 10 different looking characters in the game. Each class is explained below. You are allowed to create 4 different characters per server in Lineage. Thus, you will want to look into the advantages of each class and determine which characters you would like to create. Note that you don't have to create them all at once and that you can delete one at any time.
Each Character has 6 different statistics that they can assign points to to make them better: Strength, Dexterity, Constitution, Wisdom, Charisma, and Intelligence. Each of these is described in the image below. Depending on the character class, certain statistics are better than others.