The move is pretty routine for veteran players not on a team's 40-man roster, as is the case for both Eveland and Paulino. They can test the free agent market, but the door is not closed in terms of them re-signing with the Orioles.
Eveland, one of the first acquisitions of executive vice president Dan Duquette last offseason, was a rare spot starter and long reliever for the Orioles, going 0-1 with a 4.73 ERA in 14 major league appearance (two starts). Over the course of the season, the Orioles designated Eveland for assignment three times and he accepted an assignment to Triple-A Norfolk, which prevented him from forfeiting his major league salary.
Paulino, signed as a minor league free agent in the offseason, made the Opening Day roster because of a lingering injury to backup catcher Taylor Teagarden. He hit .254/.266/.302 in 20 major league games but was designated and outrighted to Norfolk once Teagarden returned.
Baseball America's Matt Eddy first reported that Eveland and Paulino elected free agency.