The Tree of Life world consists of multiple areas known as Biomes.
Your location is marked by coordinates which can be seen at the minimap or at the bottom of the map.
Day Night Cycle
The world has a Day / Night cycle which lasts 10 minutes each, at night Skeleton Soldiers and Cursed Zombies will spawn and attack any player in sight. At dawn, Zombies and Skeletons will gain the burn debuff until they are killed.
The same map, but smaller was in the Old World. The clouds on the map means, that that place is covered in mist. The mist is not pernament, developers will remove it someday. Right now you cant build anything in mist area.