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The Duergar Caves are involved in one of The Stan's quests. You won't be able to enter the area unless you've accepted the quest.
1 - Floor Lever
Pulling the floor lever will unlock the door leading down to level 2 of the caves (Exit B). But be careful, spellcasters. The lever can be destroyed, and if you do that you won't be able to go through the door, and then you won't be able to complete The Stan's quest.
2 - Chest
Inside the chest you can find the spear briarspike
and a miner's belt
3 - Head Warrior and Head Miner
You'll find the duergar head warrior and the duergar head miner here, plus a few of their closest friends. Once they're dead you'll find some good equipment, including full plate
and a large shield +2
4 - Key Room
In this room you'll find a "key box" with seven keys inside. You should pick up the keys, because they are essentially riddle answers that you can use when you click on the door to the north. When you answer a question correctly, you'll be sent to a room in the level and have to fight some creature there. Your goal is to kill the duergar mage (#5), which you can get to from answering question 6.
Here are the seven answers and what you'll find when you give them:
1) Silver, Fire Elemental
2) Skull, Gelatinous Cube
3) Tooth, Earth Elemental
4) Copper, Succubus
5) Barbed, Red Slaad
6) Gold, Duergar Mage and Huge Fire Elemental
7) Shell, Key Room
Save before you go through the door because it's possible that your henchmen won't teleport with you.
5 - Duergar Mage
The duergar mage is your main target in the caves, and killing it will meet the minimum requirement of The Stan's quest. Once you've killed the mage you should find a duergar head
and a duergar hammer
on its corpse. You can use those things for proof that you've completed the quest.
To return to the key room (#4), answer question 7 when you click on the door.
A. Exit back to the Emerald Hills.
B. Stairs between levels 1 and 2. The door to the stairs on level 1 starts out locked, and you'll only be able to unlock it by pulling the lever at #1.