The <u>mood</u> in a story is the way in which the author uses tone and diction to convey <u>specific feelings</u> that are related to a <u>specific environment</u>.
For example, the works in Gothic literature tend to present words that evoke a somber, tense and fearful mood on the reader that is akin to its characteristic setting: forests, abandoned towns or mansions, or desolated lands.