First there was the Realm and the Arcane Flow, and then there were the gods. The gods felt an inexplicable need to create. Using the Arcane Flow they made the Higher Realm, where they could each create a personal domain exactly as they wished. Next they planned what to do with the first Realm.
They all wanted to populate it with lesser beings to watch over, but for different purposes. Some wanted to observe these beings while they rose and fell by their own industries. Other gods wanted to care for their creations and instill in them a sense of good will for each other. The last group of gods wanted to treat their children like playthings to torment and turn against each other, or to trick into self destruction through depravity and decadence. The former two groups, the neutral and good gods, thought their visions could coexist. The last group, the evil gods, became angry when told not to touch the Realm.
The good gods created a shadow of the world which they called the Lower Realm to give to the evil gods , but they discovered that the evil gods had been scheming to take over. The neutral and good gods bound the evil ones into the Lower Realm, and forbid them to create life.
The remaining inhabitants of the Higher Realm then named themselves the gods above, made several attempts to poulate the world, and were repeatedly unsuccessful. Each group of beings, whether powerful or ineffectual, intelligent of primitive, would prove to be petty and cruel. These failures were dubbed the demons and devils, and sealed in the Lower Realm with the evil gods. The gods above soon realized the missing component was compassion, and populated the world one last time with beings who could care for others.
They are pleased with these creatures, and shepherd the souls of the deceased to proper places to spend eternity. Most are sent to the Outer Realm, whose infinite and malleable expanse they are allowed to traverse and sculpt for eternity. The only exception are evil souls, which are isolated from the rest and sent to the Lower Realm. The souls of personalities particularly valued by one god or another are given the opportunity to become angels, archons, inevitables, or other kinds of servants. Most of these souls eventually choose to retire to the Outer Realm.