Gods tend to be conceited and over-opinionated, and as such require a large amount of dedicated and regular worship. Priests who take this to heart will rapidly gain favour with the gods. This represents the favour (or lack of it) that your party shows towards the various gods. As you will see from the party's alignment chart, as you swing towards Baldor (good) you move away from Ythcal (evil), and vice versa. Your characters are assumed to be of neutral alignment when they enter the game (the dot is in the middle of the chart or the image is washed out except for the centre).
It is important to note that the characters in your control are not slaves to your every whim. They do have ideas of their own and this is indicated by the alignment of the party. If you order actions that are strongly opposed to your party's alignment, it is possible that your characters will not co-operate. Alignment is especially important to any Priests in your party.
Priests are the servants of the Gods. They are trained to spread knowledge of the Gods and are gifted with special powers to help them in their work. The extent of these powers is largely dependent on their dedication and experience, but the nature of the powers they receive depends on their alignment.
It is quite possible with prayer to become dedicated to one particular God and so be far over to one side of the alignment chart. If you do this and then decide to worship another God, you will not be accepted at first and your alignment will drift from your first God back towards neutral. Once you have become neutral, regular prayer will move you in the direction you wish to go. Certain Priest professions pray only to a single God or follow a belief.
Should you wish for one of these to join your party, you may find that they restrict future actions of the party. These are generally detailed in the information token corresponding to the profession at the time of recruitment. With the set alignment setting it is possible to have a lot of control over your alignment.
For example: P 5 instructs your party to pray to god Ythcal - the Lord of Death).