Yes, we currently do not support UTF-8 and Unicode, but that’s on our TODO list and will eventually find its way into the product.
Some background information, if you are interested:
There are a few technical reasons for not supporting UTF-8, the most important being the support for multiple databases. MySql has great support for UTF-8, but SQL server only supports UTF-16 for Unicode (maybe a few other encodings as well, but no UTF-8 unfortunately). There has been a discussion internally here to use a workaround, but we decided to delay Unicode support until the new Microsoft PHP for SQL server natively supports UTF-8 (which it does now, but it was too late to integrate it at this point for us).
So, while we want to support Unicode eventually and it has a high priority for us, it didn’t make into the v1.0. However, it will most likely be available in a future version when TestRail receives a small technology refresh.