Digital Identity encompasses all the means through which you can identify yourself in online applications and express yourself within them.
This includes software that lets you authenticate your identity to a piece of software (e.g., when you login to an online bank, game or social network) as well as software that projects your identity into the environment, such as an avatar. It also encompasses the virtual items associated with a game or avatar.
Technology called self-sovereign identity is under development that allows you to you identify yourself independent of any centralized provider, and zero-knowledge proofs may allow you to disclose only the information to applications that you desire.