The native non-human race of Beriquel and the northern shores of Ynev where they were expelled expelled from by the Kyrs. From their island they returned thousands of years later and made a pact with Gianag and settled in the mountains of Traidlan where they built their country, Tarin, and mostly underground cities. Some communities of the Dwarves migrated further and they formed several colonies in the North, maybe even in the South as well.
They were created during the battle of Bul Ruurig and Tyrrano, two gods, when their blood fell onto stones. Bul Ruurig the Stone Father accepted them as his but Tyrrano sent monsters created by him (maybe Aquirs). Dwarves only acknowledge their ties to Bul Ruurig tho. Beside him they have three other gods.
First and foremost is Kadal, the Echo of Adits. He's the son if Bul Ruurig and now the main god of the pantheon, patrons of Dwarves. Sometimes he sends mortal envoys to his people to help them. The first envoy was Tooma, the Axeman (or rather Axedwarf), who was elevated to godhood by him. Tooma is their God of War ofc and his priests are the best Dwarven warriors. When it turns out such warrior is a chosen of Tooma the other clerics initiate him to get the full powers of a cleric.
The last god might not be god entirely but he is worshiped. He is Zimah, the Runaway, originally a cleric (might be of Bul Ruurig), some great figure of the migration from Tarin. His followeres are mainly from among those who chose to leave that place and settle elsewhere. I dunno who he reached godhood.
Every Dwarf's soul has a dark side, the Gloombrother who constantly challange the morality of the Dwarf and tempt him to choose the easier way, avarice and general selfishness. He is very impulsive. It's a great shame to give in to the Gloombrother. This has two fun things. First, even Bul Ruurig has a Gloombrother, he forged him into his battleaxe. He is Sugró and he always tempted the god to use his battleaxe and when he proved not to be willing, Sugró just deserted him. Second, the player - if he plays a dwarf - can choose to give in, which could make the game more unpredictable and exciting.