The main bulk of the Dwarves reside in Orzammar, an elaborate underground city carved from stone. There are not many Dwarves, partly due to the deterioration of their empire, which used to extend into the Deep Roads before it was all taken by Darkspawn. Most Dwarves will never leave Orzammar in their entire life. Those that move to the surface leave behind their caste and are treated as deserters.
Related ThreadsDoes your game freeze when going through the Subterranean Lake on the Dwarve Island? - last post by @ Jan 1, 2007
FF1: Dwarves vs. Elves - last post by @ Jan 6, 2005
Dwarves' Island - last post by @ Jan 5, 2007
[FF1] After the dwarves, then what? - last post by @ Jun 4, 2003