So thematically, we should focus more on characters from the arcane dwarven Kingdom?
There goes my berserking gargoyle cleric of Alarault idea.
The Setting will be for season 1, the Kingdom of the Dwarves. That being said, all nations trade in Port Springs. The city of Barconrall also has many non-dwarven races (halfling, gnome, human) to help farm it's fertile volcanic soil. Crazy Rock off the coast is full of Plateau Gnomes. Gnarian's Rest is a bastion of Ice Gnomes. Humans fill the valley and the north with their migratory tribes.
I would avoid "overland" races that would avoid tight underground places.
Vistoo, Drow, and Gree would be attacked on sight.
Worshipping Gruweas, Chaos, Vishtoo, Wandle, Amat is banned