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This is the entrance from the third level of the dragon's eye.
As you enter this area, you will face a man named Albion guarding the northeast door. Albion and his friends are part of a cult, and you will eventually end up fighting them. If your party is very intelligent you can expose Albion through dialogue by asking him about the Heartstone Gem. If you do not start a battle through conversation, explore this level and question the librarian, Geelo, and Sharra, a Healer. If you can distract Geelo you will find a secret room in his library filled with occult books that can be used as evidence.
If you try to break open any of the locked doors down at any point in sight of others, this will start a battle and all the cultists will become hostile. When Albion is dead, search his body to collect Albion's Key, which you will need for the next level.
You will gain a larger experience reward for exposing the cultists and learning their secrets rather than simply picking a fight and breaking things as soon as you enter this area.
3. Geelo the Librarian
If you tell Geelo that Albion wishes to speak with him he'll leave the library, and you can search the secret room to find literature which will expose the cultists. Geelo will trade with you and carries a large amount of scrolls, so you may want to do this before a fight breaks out.
4. Sharra the Healer
Sharra can heal your party and will let you rest here if necessary. The battles on this level are tough so this may prove very useful.
A group of prisoners are trapped in this room. When you free them they will join your cause and fight with you. When the battle is over you can ask them to watch over your group while you rest.
6. High Ritualist
In this room you'll meet the High Ritualist, who is about to eat human flesh in sacrificial ceremony. Try to attack the High Summoner at area seven as soon as possible, otherwise you will fight a seemingly endless onslaught of spawned creatures.
7. High Summoner
The High Summoner awaits you in this room, try to attack him quickly before he summons any other creatures.
These five areas contain treasure, including scrolls of Flame Arrow and Monster Summoning, potions of Mind Focusing, Perception, Hill Giant Strength, Strength and a Stone Giant Strength and Stone Form, three Oils of Serpent's Scales, an Oil of Fiery Burning, a Cursed Antidote, Berserker Darts and a suit of Shadowed Studded Leather +2.
This exit leads to the fifth level of the dragon's eye.