OIAL stands for 'ORM Intermediate Abstraction Language', sometimes called the 'ORM Intermediate Absorption Language', and represents the absorbed form of the ORM model. You can see this name in the Extension Manager dialog. I believe oil is used only as a prefix in the xml, and as such is arbitrarily chosen because it is short and easy to type (the only significant xml prefixes are xml and xmlns, the only thing that matters on all other prefixes is th namespace they are bound to in the local xml file). The O does not stand for Ontology.
OIAL is present because direct transformation from ORM to any attribute based form (relational, entity, OO, etc) requires the ORM model to be absorbed into major object types. While ORM models are very stable, incremental changes in the ORM model can produce large changes to the major object types.
We currently have three implementations of ORM->OIAL:
1) The xsl transform ORMtoOIAL.xslt produces the OIAL xml that is used as the basis for our code generation and ddl transformations. Although it has served us well, the downfall to this approach is that there is no way to customize any of the generated mappings. For example, one role can map to multiple DB columns. Until we know the columns, we can't individually customize the column names.
2) The currently installed OIAL extension that loads when you add the Relational View extension. This generates an in-memory form of the OIAL model that is regenerated whenever the model changes (hence the speed hit mentioned in another post). This allowed us to show a preliminary relational view, but suffers the same problem as the xsl approach, namely that any customizations on the generated objects are lost when we regenerate.
3) An under-development piece that we call 'Live OIAL' on the team. The goal of this effort is to make incremental changes to the in-memory OIAL in response to changes in the ORM model. This will fix our performance issues and allow any customizations to be persistent. Persistent cusomizations open the door to things like live ER and UML views on the ORM model, controlled denormalization of the relational model, etc. When this is done, the other two will go. #2 is being kept intact so that we can compare our incremental change state to our state after a full OIAL regeneration.
So, OIAL will be a permanent part of the NORMA product. However, the xsl-based generation you see now will be an historical artifact once the live incremental mapping is completed.
-Matt