'Invert mouse' setting is actually inverted itself

[Solvernia]

Options -> Controls -> Mouse -> Invert Mouse.

 

When it's "normal", if you drag your mouse up, it points the camera down, and vice versa. Like piloting an aircraft.

When it's "inverted", if you drag your mouse up, it points the camera up, and vice versa. Like most third person games do normally.

 

This leads me to believe that the actual names of the selections are, in themselves, inverted.

[srmalloy]

You're missing the relevant point -- the camera always points at your character. With 'normal' mouse movement, moving the mouse up raises the camera, which, because the camera is pointed at your character, aims the camera down, and moving the mouse down lowers the camera, aiming the camera up. Inverting the mouse movement means moving the mouse up lowers the camera, aiming it upward, and vice versa.