From the second printing's back cover:
Book of Knights & Ladies is the Advanced Character Generation system for King Arthur Pendragon. With this book you may generate knights and ladies from any place and time in the legendary Arthurian realm. They may come from any of a hundred different specific locations in Britain proper, or from any one of ten foreign lands.
There are over 100 possible homelands wherein every kingdom, county and tribe is detailed. Fifteen cultures, twelve religions and three types of government all combine to create a variety of characters previously unavailable in KAP.
Importantly, new character sheets are presented for both Knight and Lady.
Finally, a number of new rules are included, such as new Directed Traits, new Passions, and a number of new Skills and Combat Skills, such as Stalk and Compound Bow.