Respawning is an event that takes place when a player's character dies and starts a new life either at their bed or the map's initial spawn point if the player has not yet placed a bed. In the main menu there is a "respawn" option which will cause the character to stop living to allow them to respawn.
The "respawn" option is highlighted in the main menu.
Respawning carries the same penalty to stats as a normal death. (-1 to max health)