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There are several things that can affect your mercenaries' morale outside of combat, such as spending more on wages/upkeep and building various upgrades.

As far as I can tell, morale in a mission is a percentage that fills up and allows access to some activated skills and a passive bonus when over 50%.

What does it main to gain +1 morale? Does this increase my starting morale in a mission, or make it accumulate faster? Or is out-of-mission morale a completely different thing that affects something else entirely?

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It increases your starting morale in a mission, letting you start firing off morale abilities sooner than just letting morale build.

I believe there's some between-mission events that only trigger at lower morale as well. However, I can't confirm that's the case, as my morale has only increased.

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