From The Heretic Knowledge Vault
Generically, a place for sheltering children whose parents had died or who were abandoned or similarly dumped on. In the context of Errant Story, one specific orphanage in Farrel (we are not told exactly where) is important because one of the sheltered children was Jon Amraphel's sister Sara.
First mentioned and seen here, as part of the backstory sequence explaining how Sara came to the Ensigerum. From this mention it appears that this particular orphanage is run by "Veracia," most likely the Veracian Church, and is used as a recruiting ground by the Ensigerum. According to another backstory sequence, while Sara was there, the orphanage's caretaker noticed odd magical effects around her, which hinted that she had some skills that the Ensigerum might find interesting. A monk was called to visit, conducted an interview with the scared Sara, and the rest is history.
It's obvious that Sara didn't enjoy her time there much. She still harbors a great deal of resentment toward Jon for abandoning her to that "hellhole." Of course, Jon's adolescence wasn't a barrel of fun and games either.