Your character is a foreigner to Calradia, though this background has little influence on gameplay, mainly only affecting how certain lords regard you in the early game. In Mount&Blade, you are given the opportunity to create for yourself a history, a past that occurred before your player starts adventuring in Calradia.
The left eye of the third skin on With Fire & Sword appears to have a glass eye. After the choices are made these stats are predetermined to match that background.