The blood elves of Silvermoon City start in the Eversong Woods, the northern section of Quel'Thalas. Farther south is the Ghostlands, a level 10-20 zone.
Long ago the exiled high elves landed on the shores of Lordaeron. They struck out to find a new home, and after many battles with the trolls, established the kingdom of Quel'Thalas. Using a vial of sacred water stolen from the first Well of Eternity, the high elves created a fount of mystical power at a convergence of ley energies in Quel'Thalas. They named this fountain the Sunwell. Its potent arcane magic fed and strengthened the high elves, and soon the wondrous city of Silvermoon was established.
Protected by a magical barrier, the high elves enjoyed peace for roughly four thousand years, but that peace was not meant to last. The Amani trolls gathered an immense army and assaulted the elven kingdom. Vastly outnumbered, the high elves hastily struck an alliance with the human nation of Arathor. The elves taught a small number of humans how to wield magic. In exchange the humans aided the elves in destroying the trolls' power base forever. Over the following years the high elves returned to their reclusive ways, but during the Third War, the diabolical Prince Arthas Menethil (under influence of the Lich King and following the Burning Legion orders) brought battle once again to their doorstep. Arthas required the power of the Sunwell to revive the necromancer Kel'Thuzad and raise him as a lich. He invaded Quel'Thalas and wiped out most of its population. In the end, even King Anasterian Sunstrider lay dead.
Additionally it became clear that the high elves had become addicted to the Sunwell's arcane energies. Now that the source of their magic was gone, the few remaining high elves quickly grew ill and apathetic. Prince Kael'thas, last of the royal line, returned from his studies in Dalaran to find Quel'Thalas in ruins. Thirsting for vengeance, he gathered the survivors, renamed them "blood elves" (sin'dorei in Thalassian), and took a group of the strongest fighters to join Lordaeron's campaign against the Scourge.
Due to human prejudice, Kael'thas was forced to accept the assistance of Lady Vashj and her reptilian naga. When the humans discovered that the blood elves had been working with the naga, Kael'thas and the others were imprisoned and condemned to death. Lady Vashj soon arrived to set them free, leading them through a portal and into the broken wastes of Outland. There, the elves met the one being capable of putting an end to their hunger: the renegade night elf/demon, Illidan Stormrage. Certain that the blood elves would die without Illidan's assistance, Kael'thas agreed to serve the Betrayer.
A lone representative, Rommath, was sent back to Azeroth with a message of hope for the blood elves remaining in Quel'Thalas: that one day Kael'thas would return to lead his people to paradise. Rommath had made great progress in teaching the blood elves advanced techniques to manipulate arcane energies. With renewed purpose, the blood elves have rebuilt the city of Silvermoon, though it is powered by volatile magics. Emboldened by the promise of Kael'thas' return, the weary citizens of Quel'Thalas now focus on regaining their strength, even as they forge a new path into an uncertain future.
In Burning Crusade
At the bidding of his new master, the wayward prince eventually returned to Azeroth and seized the site of the Sunwell, hoping to use the fount as a means to usher Kil'jaeden into the world. Ultimately, Kael'thas was slain before his recklessness could bring ruin to Azeroth. In the wake of Kil'jaeden’s defeat, the draenei prophet Velen purified the Sunwell with the Light-infused heart of a fallen naaru, transforming the fount into a source of both holy and arcane energies.
In Legion
Due the preserving efforts of Maiev and the machinations of Gul'dan (from an alternate timeline) who allowed the return of the Burning Legion to Azeroth, Illidan was revived and began rebuilding his army of Illidari (demon hunters). Either due to prejudice or some other unknown requirements, only blood elves and night elves were allowed to join his demon attribute-enhanced army.
Connections To Other Horde Groups
Though not normally advertised, starting blood elf characters can use an Orb of Translocation to get to the entrance of Undercity. The Orb works both ways, so characters can easily travel between the two capitals without having to go through the Plaguelands, which are much higher level zones than the Undead and Blood Elf starting areas. Note that Blood Elf players begin with a "Friendly" status with the Forsaken.
Leadership in Quel'Thalas
Lor'themar Theron, Regent Lord of Quel'Thalas: Leader of the blood elves on Azeroth in the wake of Prince Kael'thas Sunstrider's betrayal.
Grand Magister Rommath: Leader of all blood elf magi on Azeroth, and a former servant of Kael'thas.
Halduron Brightwing: Ranger-General of Silvermoon, the blood elves' military commander on Azeroth, leader of the Farstriders (organization of blood elven rangers)
Lady Liadrin: Leader of the Blood Knight order of Silvermoon City, (The order of the Paladin class in Silvermoon.)
Appearance
Males of the race are tall and slender, standing above the average human, and characterized by a lean, athletic musculature, making them seem somewhat thin when compared to larger races such as orcs. Females stand somewhat shorter, just above a human male in height, and have slender, delicate builds. They have a wide range of hair colours spanning from charcoal black to nearly white and a spectrum of skin colours ranging from pale to tan to ruddy. Blood elves have very long and thin ears, however their ears differ greatly from a night elves. The ears of a blood elf point vertically, whereas a night elf's ears point behind them. Blood elves also have eyebrows that extend well off of their face like whiskers. Both males and females are what would typically be considered exceptionally beautiful, with chiseled, refined features; males can also sport some facial hair, in the form of goatees. Their eyes glow green due to the influence of the fel energies they turned to with the destruction of the Sunwell.