Desgraçada translates to "unfortunate" or "wretched," but it carries a much stronger emotional weight than its English counterparts. It's a word that evokes a deep sense of misery and ill-fortune.
In the context of this Fado song, the singer uses it to describe her soul, revealing a profound sadness hidden beneath a facade of joy. She sings, "Toda a gente veria / Quanto sou desgraçada" (Everyone would see / How wretched I am), highlighting the contrast between her inner suffering and her outward appearance.