Armor Rating is the amount of (non-magical) damage that your armor absorbs.

Blocking is your chance of blocking melee and ranged attacks.

Critical Chance is your chance of striking a critical hit.

Damage is the damage you inflict when successfully hitting an enemy or item.

Defense Rating measures your ability to evade attacks.

Hearing determines the range at which you detect enemies on the mini-map.

Initiative affects your position when the turn order of combat is calculated.

Maximum Action Points is the maximum number of Action Points you can have at any one time.

Movement is the distance you can run with one Action Point.

Offense Rating measures your ability to hit an enemy.

Reputation affects how people react to you.

Sight determines how far you can see and how quickly you can spot enemies.

Start Action Points is the number of Action Points you start with in combat.

Turn Action Points is the number of Action Points you gain at the end of each round of combat.

Vitality represents how much damage you can take before you die.