Character creation retains a strict male/female binary with purely aesthetic effects and detailed body sliders, showing no replacement of gendered options or pronoun selectors. Recent Update 44 introduced the first explicitly non-binary companion, Tanlorin (a High Elf Dragonknight voiced by non-binary actor Vico Ortiz), with narrative director Bill Slavicsek defending the choice by stating it fits Tamriel as "just the way the world is" and noting a non-binary writer on the team.

Developer panels emphasize active diversity efforts in cultural and identity representation. These elements influence subplots and character design without forming the core premise of exploration, combat, and quests in the Elder Scrolls MMO.

Backlash to Tanlorin, including accusations of virtue signaling and immersion-breaking, highlights the intentional modern framing. No evidence of consultancy firms like Sweet Baby Inc. or major source-material alterations appears.