Lillibit, orphaned as an infant, lives in Foothill Forest village under the guardianship of her uncle, Dr. Snoozabit, the village physician. Learning her parents died shortly after her birth causes her periodic sadness, especially when seeing other children with their parents. She possesses a generally kind and level-headed nature, acting responsibly towards her often-drunk uncle, requiring her constant supervision. Though patient, she occasionally loses her temper over his laziness and irresponsibility. A unique ability defines her: direct communication with forest animals, forging close bonds like her friendship with Snuffly the flying squirrel, who acts as both companion and occasional transport.

Her strongest bond is her close friendship with Willibit, sharing frequent adventures. Snagglebit, the mayor's son, harbors romantic feelings for her, creating tension where he and Willibit sometimes clash for her attention, though her primary connection remains with Willibit. Her compassion extends to supporting Teenybit's efforts to befriend the isolated elder Scarybit, often misunderstood as a witch.

Near the series' conclusion, Dr. Snoozabit's story about her parents' death is revealed false. Her parents are alive, members of the Wanderbits—descendants of the exiled Builderbit race, ostracized for historical mistreatment of animals. Accepted by the villagers, Lillibit experiences an emotional reunion with her parents. This coincides with a devastating earthquake destroying much of the forest. In response, she actively participates alongside the community in rebuilding efforts, demonstrating her integration and resilience.