The goblins are a race of constructs created by the Red Court to be used as a weapon to destroy the rival Court of the Bull. They were such an effective weapon that they could not be stopped by the Red Court even after the Court of the Bull had fallen.
The Labyrinth was created to contain them by the White Court in an effort to stop their spread. Now, they dwell in the labyrinth and are controlled by the 'Goblin King' Jareth, a Fae who has managed to do the unthinkable and learned how to control them...to a point.
The goblins were created to be used as a weapon against the Court of the Bull whom the Red Court wanted to overthrow to add to their own power and influence in Allutheria. They were made with a single purpose; to destroy the court of the bull. They were creatures designed to kill Fae and they thrive on that purpose. Even after the Court of the Bull had fallen, they overran what remained of the fallen Court and proved to be a plague that the Red Court could not control. In an effort to stop their spread and end the devastation with the Court of the Bull, the White Court sealed the Goblins away within the Labyrinth.
They only came under control when a Fae name Jareth fought his way through the Labyrinth and claimed their decaying and avoided home as his own court. Now they follow him, if only tenuously, hungry for the lovely forms he gives them through the use of the magical torcs of his own creation.
Though caged within the Labyrinth for many, many years, Jareth worked tirelessly to find a way to free them and eventually found a way to open a portal and allow small groups of them at a time to escape into Allutheria to wreak havoc.
The goblins have their own strange sense of culture, they appear to be brainless creatures that fight each other and only seek to destroy, but over the years they have developed a system.
The goblins rank themselves based on Jareth's approval, even if the goblin King's hold over them is based on a show of strength and a promise of power. Their ranks are as follows: those with a torc which allows them to have limited power and to change their hideous forms into those of a beautiful young fae are amongst the first rank of goblin society. The second rank consists of those without torcs. The strong and weak.
The goblins will do what Jareth wishes, simply for the chance to keep their magic and remain in his good graces.
Goblins tend to live in large groups. The strongest, those favored with torcs, are typically found living within the castle nearest to Jareth. Those without torcs are found in what is called the 'Goblin City' but is truly just the ruined homes of the former Courtiers of the Bull. Goblins enjoy indulging themselves in games, alcohol, food, and the like. When not indulging themselves or serving the Goblin King, many can be found sleeping in large clusters and awaiting instruction from their king.
The goblins are ugly creatures, essentially constructs made to kill and destroy. They are not by any means attractive creatures that can come in any number of sizes, shapes, and colors with a wide array of features that bare only one commonality...they are hideous.
They are not the brightest creatures in Allutheria, but that is part of the reason they are so feared, most are too stupid understand the word 'fear' themselves. Those that are smarter than the average goblin are typically plagued by cowardice born from a higher intelligence than their brethren.
It is unknown if Goblins can reproduce though it is widely believed that they can, they simply are not smart enough to learn the particulars of reproduction without someone to teach them. Should someone take the time to teach them about sexual reproduction and adequately distinguish between the genders of Goblins, there is a chance that they could be made to reproduce.
Goblins posses no magic of their own, however they are exceedingly strong and violent creatures, they are fairly magic resistant except for the magic that composes the Labyrinth. Only two fae alive know how to defeat the goblins with magic, Jareth and Sir Didymus. It is said that some of the strongest and most wily of the Goblins have learned that they were created by the Red Court with an ability to mirror magic for short periods of time. This allows them to turn an enchantment back on someone when it is cast and could prove devastating to the land of Allutheria if the skill becomes more widespread. Fortunately for Allutheria, only a very few Goblins have learned to utilize this ability and are not keen to share the knowledge of it for fear of losing their advantage over the other Goblins.
Those with Torcs can assume the shape of an attractive Fae so long as Jareth continues to filter the magic of the stolen years of the Changelings into said Torcs.
A Goblin's relatively small size makes them somewhat fragile to physical injuries caused by such weapons as swords and daggers. They are far from impervious to being struck, stabbed, or dismembered and could be killed by means of physical weaponry...lucky for the Goblins, very few Fae outside of the occasional Amazon or veteran of the Great War, can utilize weaponry without the aid of magic.
It is also unknown what the typical life span of a Goblin is. They are so ugly that it is difficult to know by looking at a Goblin how old it is, and most are not smart enough to recall how long ago they were created. In theory, Goblins are immortal and will not die from old age.