The Upper World is the surface of the Earth, where all living creatures are. Nocturna inhabits this realm, but cannot directly interact with it. If a dead creature manages to escape from the Underworld to the Upper world, they will somehow reappear as a Spirit, that has the ability to observe and become anything, but cannot interact with the living world at all. This happened to Shade Silverwing at the end of the book Firewing,

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