Morale, and it's counterpart, Demorale, is a Status that modifies the checks a character performs by affecting their mood and confidence. They are usually given to creatures who have been significantly affected by positive or negative effects and outcomes. Generally a character doesn't get a Morale bonus or Demoral penalty unless an interaction inflicts it.
Trigger
Morale bonuses are granted to characters when affected by Metaphors and abilities capable of granting them. Likewise, abilities and interactions can inflict Demoralisation (Demoral). Conceptually, the two statuses affect mood, confidence and behaviour so they're considered to be related to Charisma-based Metaphors and abilities. Morale and Demoral are Mind-based conditions, and to resist it, often use Charisma as the resist stat. There is little reason to resist Morale as it is a beneficial status.
Effect
Morale is a beneficial status that gives a bonus equal to its magnitude to all checks that character performs. Demorale works oppositely, inflicting a penalty to all checks that a character would do while affected. Both conditions have special decay rates compared to other conditions. On top of any stated by an ability, Morale magnitude is reduced by 1 any time they fail a check, Demorale likewise is reduced by 1 whenever they succeed a check. "The daring Space-Mercenary with a Morale of 3 takes a shot at their opponent across the bar, gaining a +3 bonus ToHit. Unfortunately the attack misses, with the winning streak broken, their Morale drops to 2 and subsequent checks will only have a +2 bonus. Succeeding on the next check will maintain this Morale bonus at 2." In both cases, magnitude does not rise by succeeding/failing, respectively, it can only be increased by effects that grant and raise magnitude. "In the underground fighting ring, the daring Space-Mercenary has been pitted against an opponent twice their size, a successful demoralisation from the giant alien inflicts Demoral 2 upon the Mercenary. Despite this, the Merc leaps forward and throws a punch at the alien's jaw with a -2 penalty and succeeds. Having proven this could be a winnable fight, their Demoral status magnitude drops to 1 and their next check will only be at -1 penalty."