The realworld is a colloquial term for the physical reality of everday life which everyone experiences; it is also referred to as the human condition.
In the context of military exercises, it means real, not an exercise.
Real life, the experience of a person when time is not being spend on leisure or recreational activities, especially when such time is spent off of the computer or Internet
Since the introduction of The RealWorld, Bunim/Murray has spun off a number of other reality shows, including most notably Road Rules, in which 5 strangers (6 in later seasons) are put in a Winnebago and asked to complete certain tasks to eventually gain a "handsome reward".
The episode, which was hosted by Shannen Doherty, featured a skit depicting a RealWorld cast patterned after the Los Angeles cast, and poked fun at the discussions of racism, bigotry and political differences that served as a recurring theme that season.
The reality show The Surreal Life on is structured similary to The RealWorld, except that the housemates, who live together for ten days, are celebrities.