It depends on who you're interacting with, but generally yes. No one really RPs in their leveling gear unless they're fortunate enough to have, say, a complete tier set.
Transmog gets expensive and isn't really feasible under a lot of circumstances. What most people do is just keep the pieces of their "RP Set" in their bags and switch into it when they're going to RP. This also lets you utilize armor types you wouldn't normally wear for leveling and/or can't transmog to, like Cloth items or statless items (whites, stuff like the Fire Festival Crown, etc). Since you don't need stats for RP, you shouldn't need to worry about them. Use the 'Armor Set' thing on your character pane to keep your RP set available at the touch of a button, though be sure to keep your 'Leveling set' up to date so you aren't scrounging your bags for some ring or something you forgot to add later on.
Starting to RP
Re: Starting to RP
someday I'll find someplace to host a sig that isn't stupid money-grubbing photobucket

