You is a character introduced in episode 13, A Story About You. The character You may easily be confused with you, the listener, especially since You are one of the many people listening to Night Vale Community Radio.
Cecil narrated Your story on the radio. He described how You came to Night Vale after seeing the dark planet, how You left your fiancee, and how You grew crazy with the freedom of being in a new town.
You lived in a trailer out in the car lot next to Old Woman Josie's house, and You had a job moving crates in the desert. On the day of Your story, You stole a crate and took it home with You. You were caught easily, since Your story was being broadcast on the radio. The crate turned out to contain a tiny building from the the underground city. You were briefly reunited with your fiancee. You saw the dark planet again, and You were apparently killed by Them.
Because it is easy to confuse the character You with any fictional listener in Night Vale or a real life listener of the WTNV podcast, the character is commonly given a capital Y, as shown throughout this article. In a case where the word "you" would appear at the beginning of a sentence (as in, "You may not know this ..."), the character You is given more precision with a phrase similar to "The character You" or "You, the character."
Within the canonical Night Vale, there is no distinction, since Cecil is actually telling the story of you, the listener.