The building system in Chronicles of Elyria is really about what you place in a room. If you place sarcophagi and things like that in the room, then effectively you’ve created a crypt or a mausoleum or something like that. There are coffins, there are things like that that you can use to hold the dead in; even above ground, entombed in concrete and things like that. I mean really, use your creativity.
[Source - Q&A Feb 27th]
It has also been confirmed you can burn your dead, which I would like to opt for please as I think leaving bodies around might be oddly risky here! However, a graveyard with bodies buried (rather than in crypts) would likely depend on if we reach the stretch goal for tunnelling at $1.75mil or perhaps even burying $2mil. But, even if they are not reached we are going to have to decide what we are doing with bodies of the dead because they are not just going to despawn.