At a campfire, it will give you a level up option. You can spend your collected souls on a stat upgrade. Each single stat upgrade increases your character level by one.
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Demon Souls is the 1st of the series, with Dark Souls being second. Storyline wise, Demon Souls is also before Dark Souls.
You need to collect souls from killing enemies and bring it to the black maid ( the one who upgrades your stats! ) then the soul level will go up!
finish story mode part "d"
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Level it up with high friendship during the DAY. If you level it up with high friendship at night it will turn into umbreon, the dark eevelution