After starting off with just a "magical wood", a half-imagined far away city, and a dungeon, I've been putting a little bit of thought into the campaign setting which my Labyrinth Lord games have been taking place in. I really like the idea of keeping things very vague until they need fleshing out, so all details I've been making up have just been on the level of rumours the PCs have heard about places. I just sent the players these little snippets about the area they're in.
The Confederacy of Harln-Halladan
A small, and, on the grand scale of things, insignificant alliance consisting of seven towns spread around the western rim of Harln, the magical forest.
Holt: A curious settlement situated along the south road to Varnmeet, in the nook where two rivers meet, Holt is dominated by the cult of Vardilli, “the spinning god”, whom the townsfolk worship with glee and abandon.
Dreg: A town of ill-repute, or of ravaging fun, depending who you ask. Dreg is under some unknown (but much studied) magical influence which makes it impossible for women to conceive children there except on the night of the full moon. Consequently Dreg has developed something of a popularity with ladies of the night and their clientèle.
Hegsend: Situated right at the southern tip of the magical forest, and overlooking the barren wilderness of the Crawback hills, Hegsend is a small and somewhat isolated town where outsiders are not often seen. Rumours tell that a few times a year Hegsend is visited by a procession of mysterious fey who come from the forest.
Elyeth: The seat of the Confederacy, and home of its ruler, the Confederate Yagk and his order of truthsaying court wizards.
Micmar: The town of Micmar lies at the northmost edge of the Confederacy along the great trade road from Yelleth to S'raka. It is a bustling place of many markets and exotic produce, and is home to numerous merchant houses.
Ling: A fort-town built atop a high hill, overlooking the surrounding lands, Ling is known for its profusion of shrines and temples, including the famed oracles of the seven singing spirits, which are located in a ring about a mile distant from the town centre.
Drigbolton: The small town of Drigbolton lies close to the edge of the magical forest, and is a gritty and grimy place. It is known for its proximity to a great marshland, and for its production of peat and raising of bog-swine.