The race of dwarves was originally an offshoot of humans who chose to live in the mines they worked in. They went into the Fractured Mountains mines early in the history of humanity in the realm of Nevre and as such they have regular skin tones that tend to be lighter in color. Dwarves loved the caves and the scant food that grew in them so much that the environment eventually shaped them. Tall humans, before they became dwarves, left the caves early because they couldn’t build the ceilings very high inside the caves. The stockier people survived in the caves longer as they were more likely to survive cave-ins and beards and hair became important as they had a difficult time keeping the caves warm at first.
Current day in Nevre finds the dwarves above ground. This came about when a small group of foolish dwarves decided they wanted to destroy an ominous portal they found in Dark Under with lava. When the lava came close to the portal it activated and sent tremors through the caves that caused the lava to instead flow into the dwarven capital cities. While many dwarven clans are content to stay above the surface and don’t care to reclaim their homeland a single clan has allied themselves with The Commander to clear out the Dark Under creatures from their cities and reclaim them. The reclamation was only necessary because magic was reintroduced to the realm of Nevre.