Caracitated is a mix of Carnally Suscitated which means Sexualy aroused, let me explain. Carnal means body, to suscitate means to provoke.

So... Bodily provoked.

Saying you're Carscitated is a way of saying you're having a boner but without making anyone uncomfortable.

Briefly, "the realization that each random passerby is living a life as vivid and complex as your own." Originally from the Dictionary of Obscure Sorrows, which has a lot more beautiful neologism definitions like this you might enjoy.