Let's hope it untangles some of the confusion. Dragon Knights are these huge powerful lords of various areas, and they were unheard of until Divinity 2.
And Aleroth was a tiny village atop some ruins in Divinity 1, but it was apparently a big thriving place long ago.
And Divine Divinity said there was a war between the Seven Good Gods and the Lord of Chaos, then there was the war between the Damned wizards and the Duke of Ferol - with an insubstantial Lord of Chaos, and a later war 600 years before Divinity 1 that was between the Damned and the Seven Races. Where do the Wizard Wars fit in that chronology?
And there were apparently big wars between Dragon Knights earlier as well, apparently, given what I've heard about Dragon Commander.
In the meantime, all the races from Divinity 1 except for humans and imps seems to have dropped from the face of the planet.
I'm still not clear if Rivellon is the name of the continent or the planet, or where the Black Ring is getting all the human troops it piled onto those Flying Fortresses.