The city of Stormhold during the second era was centered around the Hist tree atop the hills. Prior to the Argonian's staying at the town, Stormhold was an ayleid ruin known as Silyanorn. The Argonian used the ruins to house their burial grounds and their guilds. Around the tree is the marketplace. Further out is the local inn, bank, and the docks. East of that is the Dunmer housing. West of the docks are the residential homes.
When Black Marsh annexed into the Second Empire in 1E 2812, Stormhold was turned into an Imperial Prison settlement where the Dunmer use it as the center of their slave trade and built structures like in Morrowind. Argonians come around and built mud huts, and aided the Dunmer in attacking Primitive villages. After issues with the Dunmeri Slave Trade and the inconsistent Imperial rule, stability returned in Black Marsh with the introduction of the Vicecanon system.
Stormhold Prison was once run by Quintus Varus, who was known to be lunatic. There have been many overseers and prisoners who've gone mad enough to kill other workers who try to clear the Stormhold Ruins. A Prisoner who went by the name of the Master Tunnel Rat garnered a reputation amongst prisoners and gathered all sorts of treasures throughout the ruins. The Rat eventually tracked down Varus and defeated him.
During the Alliance War, Stormhold had suffered through a series of different murders and crimes. The Vestige volunteered to investigate the situation. Several citizens have died through various different methods unlike what the Shadowscales do most of the time. It was eventually revealed that the Aldmeri Dominion was behind this, this started the conquest of Black Marsh by the Aldmeri Dominion, which was halted by the Vestige's involvement.
Around this time, the city of Stormhold became the capital of Black Marsh.
During the Imperial Simulacrum, the Eternal Champion visited the city of Stormhold to find a piece of the Staff of Chaos in Black Marsh. The Champion visited a local organization known as the Conclave of Baal to seek their guidance. The Conclave struck a deal with the champion that, if they retrieved a tablet from the Vaults of Gemin, then they'll give the location of the piece. After retrieving the tablet, the Conclave pointed the way to the legendary forest of Murkwood.
When Arena was going to be a Tournament based game, Stormhold's team was known as the Black Shields.[OOG 1]