In Literature
For narratologists, all parts of narratives — characters, narrators, existents, actors — are characterized in terms of diegesis. For definitions of diegesis, one should consult Aristotle's Poetics; Gerard Genette's Narrative Discourse: An Essay in Method (Cornell University Press, 1980); or (for a readable introduction) H. Porter Abbott's The Cambridge Introduction to Narrative (Cambridge University Press 2002). In literature, discussions of diegesis tend to concern discourse/sjužet (in Russian Formalism) (vs. story/fabula).
Diegesis is multi-levelled in narrative fiction. Genette distinguishes between three "diegetic levels". The extradiegetic level (the level of the narrative's telling) is, according to Prince, "external to (not part of) any diegesis." One might think of this as what we commonly understand to be the narrator's level, the level at which exists a narrator who is not part of the story he tells. The diegetic level is understood as the level of the characters, their thoughts and actions. The metadiegetic level or hypodiegetic level is that part of a diegesis that is embedded in another one and is often understood as a story within a story, as when a diegetic narrator himself/herself tells a story.
Read more about this topic: Diegesis
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