Well it is a memorial for the controller of the vampire Pazuzu. You can see when you are in the graveyard that below the map view is the note regarding the inscription on Pazuzu’s headstone. The Real Life controller of Pazuzu was Steve. A friend to many people in the RP of the game, Steve died from heart complications, which he had suffered his whole life, and those of us who knew him beseeched RavenBlack to commemorate his passing.
Actually, the vampire name of the person directly responsible for the graveyard’s existence is Wander. So if you see him on the streets, maybe give him a little room and don’t bite or rob him, out of respect for his kind deed.
Speaking of which, most clans and groups have a respect for this cemetery which they honor by declaring it a no-attack, no-thieving zone, or somehow describe it as an "off limits to negative acts" place. Those of us in FTA ask that you please show the respect that such a place deserves and also not bite, rob, scroll or holy water in this place. It has become a sign of respect to not do violence to each other in the Graveyard.
That being said, many many people don’t know about the RP of this game, or care that we had a cemetery put in. So don’t be at all surprised if someone does bite or rob you here. Simply let them know via an in game message using [Say It] from the "More Commands" options, that the Graveyard isn’t just a place on the streets, but a real memorial to a well respected player who died in real life, and that we ask them to respect it’s true meaning as a memorial. You could even add a link to the FAQ Raven Black provides on the matter, and maybe even the FTA itself, if you would be so kind.
The act of not retaliating, but explaining the situation, will usually be more impressive than a HW in the fangs. It will leave a more reverent mark upon the player than any item.