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These secrets will destroy us! Life here is supposed to be simple!
 
— Ariel in the island's schism

Ariel was a colonist on The Island, before she fled the place along with most of the other colonists in the outrigger boat, after being poisoned by the Medusoid Mycelium. Before she washed up on the island, she mentions she had escaped from prison where she disguised herself as a young man for years.

The End

The Baudelaires are introduced to Ariel along with the other islanders when they all scavenge the storm for useful items. Ariel finds an object she thinks is a dagger, but Klaus Baudelaire points out that it is a tool used for cutting open the pages of books when they were stuck together. Ishmael persuades Ariel to let the sheep take the tool to the arboretum.

Later, during the island's schism, she is on Ishmael's side, as she says she has had enough adventure after escaping prison some time ago, and she is mentioned fighting Professor Fletcher, who shouts at her.

Toward the ending, she and the other islanders drink coconut cordial which acts as an opiate and makes them drowsy. This causes everyone to come to the conclusion that the Baudelaires are the root of the trouble, and they all leave on the outrigger.

Etymology

The name Ariel probably comes from The Little Mermaid, who in turn was named after the Red Sea because her hair is red.