Here is the somewhat dryer free encyclopedia breakdown of what otherkin are.
An otherkin is a person who believes themself to be a species other than Homo sapiens. Otherkin is also a self-applied label for the subculture of such people. Specifically, these individuals believe themselves to be, biologically or spiritually, members of a species of animal or legendary creature. Otherkin may claim to be cats, dogs, elves, fairies, angels, dragons, demons, werewolves, or some other animal-human hybrid. It is not altogether uncommon for them to profess their existence as a combination of these creatures.
Otherkin should generally not be confused with role-players, although many otherkin are also role-players; nor with transhumanists, who seek to modify humanity rather than presuming that they are already non-human. Although many otherkin claim that “otherness” is similar to transsexuality, this claim is generally taken with offense by transsexuals.
The exact nature of otherness is open for debate in the otherkin community. While some otherkin believe themselves to be biologically non-human — for example, by claiming distant, or not so distant descent from a non-human — others believe themselves to be human in biology but “other” in spirit, often attributing this to reincarnation or a “misplaced soul”. The reincarnationists, who currently are the dominant force in the subculture, disagree amongst themselves as to whether these otherkin souls come from Earth, other planets, or different planes of consciousness. There is also some controversy as to whether people claiming to be otherkin may be suffering from schizotypal personality disorder.
There is ultimately no practical difference between the distinctions; furthermore, there can be none, due to the subjectivity of any personal psychological experience and the lack of precise terms with which to describe the associated phenomena. (via Wikipedia)
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