As much as we’d like it to be unique, reality is a spectrum.

Varying from factual to ‘seat of the pants’. And everything in between.

But what is this thing we call ‘reality’?

The key word here being “we”, of course!

First of all, reality is a concept. Which covers everything we know it exists ‘out there’.
Mind you, not everything ’which exists out there’, only ‘what we know about’.

We know about how?
Here’s where things become really interesting.

Maturana says that we, humans, are the first animals able to ‘observe themselves observing’ – his definition of ‘self-awareness’.
We not only observe things, we’ve developed the ability to set them apart from us. To understand that ‘things’ are both separated from us and still connected to us.
Even this understanding of ours comes in various degrees.
Some of us behave as if there is no tomorrow while others have developed intricate thought systems which connect our past actions (a.k.a. ‘sins’) with our future (a.k.a. ‘redemption’).

‘But most of the religious people base their faith on myths rather than facts!’

Well… myths are facts too.
Not in the sense that all the content of all myths had necessarily happened!
My point being that a story becomes a myth/fact as soon as enough people believe in it. Regardless of that story being a factual description of a real incident, an interpretation thereof or even the figment of somebody’s imagination.

Too much confusion… facts are no longer factual, reality is no longer real… everything is in a sort of limbo…

Yep. You’ve got the gist of it.
Our own consciousness has thrown us in limbo. Which, obviously, is yet another of our own inventions…
The funniest thing being that our consciousness hates being in limbo. And tries to explain everything it comes in contact with. Which explains why we have so many myths.

Now, if we want to explain the difference between the factual and the seat of the pants realities, we need to retrace the whole argument.

We have the ‘real’ reality – everything that exists out there, and the conceptual one. Everything that actually exists versus what we know it exists. Or it may exist.
What we know it exists can be further divided into things we think we have completely understood, things we ‘know’ but we still cannot fully explain and things which continue to baffle us.
For instance, we think we know everything there is to be known about internal combustion engines, we know when we are in love but we cannot explain ‘love’ and we are completely baffled by the callousness of some of our brethren.