Reality is about defining and knowing of our meatspace. Specifically it refers to people's perception, psychology, and interaction with things like people, objects and the environment as well as abstract items like our culture. Reality and therefore our free will is constrained by the physical law or universal rules while still being chaotic at all scales.
Many people try to ignore reality because it might to painful or because they are greedy and selfish. Other things like false information and opinion distort or modify the perception of reality. Reality is hard to measure but easy to sense and observe locally.