It basically starts out as a procedural comedy where every episode takes Christian lessons to illogical extremes through the naïve protagonist Orel. But, then it evolves into a pretty sophisticated show through the established continuity, in season 2 it starts to explore the town and other characters that exist in it. It really becomes something else from the end of S2’s double-episode ‘Nature’, following on that in season 3 is some of the bleakest, darkest and depressing episodes of television I’ve ever watched and it was freaking glorious, it reminded me of my experience watching Six feet under.
It was created by Community’s Starburn (Dino Stamatopoulos) and 30 Rock’s Pete Hornberger (Scott Adsit). It also had perfect soundtrack/music (e.g. The Mountain Goats - No Children).
Alas, the shows true vision was never captured because Adult Swim cancelled it:
The A.V. Club: The back of the first-season Moral Orel DVD has an e-mail from Adult Swim Vice President Mike Lazzo three years ago about how much he loves the show. He calls it a "masterpiece of American humor" and one of the best series he's ever seen in his life. Now it's being canceled. Scott Adsit: By Mike Lazzo. AVC: What happened? SA: He felt that it was getting a little too soulful, a little too serious. I think the word he might have used is "depressing." It was not just the silly little puppet show anymore. It was kind of naughty for the insomniac potheads who were the target demographic. It was evolving into something a little more heartfelt. It was developing a soul, essentially. AVC: That's how Adult Swim sees their audience? As insomniac potheads? SA: I can't speak for them, but yes. AVC: Since the show's run was cut short, did you have to adapt its intended trajectory? SA: Well, our grand scheme was, over five seasons, to evolve these little puppets into the most realistic people on television. We were gonna bring in Orel's [paternal] grandfather, and he would become a resident in the house, and kind of a different voice, because he was someone who you'll see in the episode called "Passing." He's terminal. And it's Orel dealing with the idea of death and afterlife and a different voice—a voice of reason, because his father kind of gave up on God when his mother died.
http://www.avclub.com/article/scott-adsit-14324 - Great interview by the way, goes more into the show and the vision for it.