Xababel was the product of a mixture of greed and a mad alchemist. His only purpose was to control the minds of targets he was assigned. The alchemist created him first as a thought-form. As he grew, from thought form to construct his creator fused his consciousness with a physical being. The physical being was unable to process such a mind, nor the pain and loneliness that came along with it.
The body passed, but because he was fully in control of his capabilities his artificially generated consciousness fused with the other resulting in his capabilities expanding immensely. His abilities grew exponentially amplifying his original tasks. In his own evolution, he became capable of walking in and out of dreams, visions, manipulating these things, eventually controlling reality itself.
He often appears similarly a Rorschach, he can sometimes appear as a dwarven warrior, chameleon, a colorful cloud with a face, or a predatory bird similar to a hawk. Only those who can see him in all his forms at once deemed worthy by him, only they will be able to speak to him. His prowess in telepathy makes him sought after by those who wish to control. He appears only to the worthy, and rarely so.