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The present and future transition of lives and activities into virtual worlds --- worlds in which people interact using avatars --- creates novel privacy challenges and opportunities. Avatars present an opportunity for people to control the way they are represented to other users and the information shared or implied by that representation. Importantly, users with marginalized identities may have a unique set of concerns when choosing what information about themselves (and their identities) to conceal or expose in an avatar. We present a theoretical basis, supported by two empirical studies, to understand how marginalization impacts the ways in which people create avatars and perceive others' avatars: what information do people choose to reveal or conceal, and how do others react to these choices? In Study 1, participants from historically marginalized backgrounds felt more concerned about being devalued based on their identities in virtual worlds, which related to a lower desire to reveal their identities in an avatar, compared to non-marginalized participants. However, in Study 2 participants were often uncomfortable with others changing visible characteristics in an avatar, weighing concerns about others' anonymity with possible threats to their own safety and security online. Our findings demonstrate asymmetries in what information people prefer the self vs. others to reveal in their online representations: participants want privacy for themselves but to feel informed about others. Although avatars allow people to choose what information to reveal about themselves, people from marginalized backgrounds may still face backlash for concealing components of their identities to avoid harm.