Nonhuman Characters
Fantasy settings are rife with the trope of monsters great and small, but not everything that isn't human in these settings is a monster. Such games commonly have nonhuman player characters and NPCs. Defining these in Level One is just a matter of differentiating them from humans, or whatever your baseline is. You don't have to use humans as the baseline; if your entire game is about goblins in a warren it's ok to make goblins the norm, but we'll assume human.
Conceits
A Conceit is an unrated Truth (capital "T") about the game or something in it.
Some things can't be measured. When those things are really important, but the only accurate way to represent them is just to say "this is true," then that's a Conceit. A demon might be Immune To Fire, able to stand in an active furnace without harm, but still subject to other types of damage.
Powerful nonhuman characters rely on this heavily. A Conceit is often all you need to wrap up a bundle of complicated details that don't really need a rating. A character might be an orc, a pixie, or a ghost; the whole group probably immediately knows a lot about them, what they might be good at and what troubles they might have before bothering to try and put numbers on these things.
Do not assume reasonable behavior from anything with an opposable thumb.
Conceits are incredibly powerful. Don't abuse them! Still, games are about fun. If it's fun, and everyone agrees... have at it.
Sometimes, to make a nonhuman, all you really need is the idea. "My character is a goblin warrior!" Discuss with the GM and the group what goblin means, write up a description for goblin culture and physique, and run with it. That might be all you need, but often it isn't.