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Spyro the Dragon is summoned from the Dragon Realms to Avalar when the realms three homeworlds are all taken under seige by Ripto; the game's antagonist in Spyro 2: Riptos Rage. The inhabitants of Avalar desperate to rid there home of Ripto and aware of his hate for dragons use the magical power of their realms orbs to pull a dragon from the Dragon Realms.
Aside from the the games opening cinematic and ending level all Spyro 2 takes place within then Avalar worlds. In Spyro 3: Year of the dragon; Hunter a original inhabitant of Avalar has followed Spyro back to the Dragon realms and assists Spyro on his quest into the Forgotten Worlds. Several other references are made to Avalar during the game when Spyro discovers "The Professor" an Avalar mentor holds a laboratory withing the forgotten dragon worlds.
Sources of magic
Each world within Avalar possesses a unique world talisman. These talismans when used together are capable of breaking magical barriers put into place by Ripto.
Orbs are small green magical spheres which when used in numbers have different magical effects on the environment. They can be located hidden all throughout Avalar or awarded for completing quests. Orbs are most commonly used for unlocking new lvs
Almost ever world has small gates capable of awarding Spyro a magical ability for a short period of time (examples are flying, super jump, invincibility, super breath). Inorder to power these gates Spyro must kill a certain number of enemies within the level. The magical gate s absorb the spirits of the dead displaying a number of required remaining kills.