1) has mostly been answered. The council and the evils. If you really, really want a lot of detail on these guys, if the wiki doesn't have it all, The Book of Cain has all kinds of info on this stuff (but I bet the wiki has all of that info plugged into it, so you're probably good, and I'm just too lazy to go look at the wiki.)
2) character motivation is mostly "I don't want our world falling into absolute chaos and becoming just another part of hell as a result of the evils taking over and heaven being too lazy and/or unable to find our plane of existence."
3) maaaaaaybe? The Book of Cain actually covers just about everything you could possibly want to know about the stories, I think. If you actually think you would enjoy playing the games though, I would say yes. It would give you a good idea of where the genre has come from and how far it's come, and there certainly is story to be told and gotten from the first two games.
The series has a whole has a whole fuck ton of story to it though, some of it wasn't really revealed or made completely known until Blizzard put out the Book of Cain which gave all kinds of extra info, most of which, if I had to guess, will have some kind of importance in D3.
Mostly it comes down to how deep down the Diablo hole you want to go. Do you want to completely engross yourself in the story? Do you want to know everything there is to know about the story? Or is the story just something you couldn't care less about and only need to be told "stronger dudes are off that way that will probably drop better loot" as motivation? Or is a middle of the road get some story but don't care about the deeper parts of it your thing? If you really don't care, just play Diablo 3. If you want to go all the way, play Diablo 1 (if you can get a copy), Diablo 2, read the Book of Cain, and play Diablo 3, and maybe even read the novels that were put out. If you want a middle of the road where you don't care that much, I'd say either read the wiki, read The Book of Cain, or play Diablo 2 and then play Diablo 3. That should get you by on a "middle of the road" path for caring about the story.
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