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This is the entrance to the Salamander Mines from Lower Dorn's Deep.
You will meet a gnome priest named Guello here. He'll tell you that he wishes to return to his people, and will ask you to kill Shikata, king of the salamanders, at area three to help him do this.
You will face the King of the Salamanders, Shikata, here. Kill him and then return to Guello, who will thank you for helping his people. You will gain a large experience reward for this.
The door next to Shikata leads to the Palace Gardens.
These two doors lead to the Greater Forge.