Damon was a Human wizard with the original Dragonlords and one of the founders of the Academy at Mytros.
Alongside Rizon Phobas, Damon oversaw the bonding of Dragons and Dragonlords during the First War. It was also during this war that he met, loved, and lost Calliope.
At the end of the war, it is said that he brought back the Oath of Peace, before vanishing with his ship and the bodies of the fallen Dragonlords.
However, when Isadore Huorath became leader of the Dragonlords, he returned to Mytros to advise her. Then, after her death, Damon retreated from society and went to look after the Necropolis at Telemok.
Damon was still guarding the Necropolis when the Oracle's Chosen came to retrieve Xander Huorath's weapons and armour for their quest. Originally a Human, Damon should have been dead: but, at some point in the last 500 years, he became a Lich.
After meeting the heroes, Damon has decided to leave the post he has guarded for hundreds of years; though it is unclear exactly what his plans are.