Linear group representations are vector spaces equipped with certain symmetries. More specifically a rep is a space $V$ and group $G$ with homomorphism $G\to{\rm GL}(V)$, or equivalently a $K[G]$-module where $K$ is the underlying scalar field. There is a trace map ${\rm tr}:{\rm End}(V)\to K$ which sends any linear transformation $A:V\to V$ to its trace ${\rm tr}(A)\in K$. If we postcompose $G\to{\rm GL}(V)$ with this trace map, we get a character $\chi_V:G\to K$ (when $G$ is abelian, it's a morphism $G\to K^\times$).
In particular, the dimension can be recovered via the relation $\chi(1)=\dim_KV$. Thus, in general, group characters function as a sort of "twisted" dimension value, as $\chi_V(g)$ for various $V$ and $g$ can take on negative or even nonreal values (when $K\subseteq\bf C$). Character theory is intimately related to abstract harmonic analysis / Fourier theory and roots of unity, which is why the adjective "twisted" is sensible in this context. In other places as well, when character-like values (themselves viewed as "information" or "data" about other things) are placed as new coefficients on already understood series, the series are then called "twisted."
Another representation-theoretic way of creating nonnatural number dimensions is through the creation of "virtual" objects (in the same way that going from the semiring of positive naturals with addition and multiplication to the full ring of integers involves creating negatives as "virtual" numbers designed to cancel against the "tangible" numbers). There are two major operations on representations, direct sum $V\oplus W$ and tensor product $V\otimes W$. As it happens, tensor products distribute through direct sums in the same way that multiplication distributes through addition.
Thus, our representations form a semiring under $\oplus$ and $\otimes$ operations; adjoin formal additive inverses of the representations and we have ourselves a full ring (called the representation ring, as well as other names). These give rise to "virtual" characters, which can take negative values even when applied to $1\in G$, which is to say the dimension itself can be interpreted as negative.