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Davaeorn was a mage in the employment of the Iron Throne.
Davaeorn was responsible for controlling the iron production in the Cloakwood mines. Because of the iron shortage that the Iron Throne caused, the Cloakwood mines remained the only mines producing real iron instead of contaminated iron.
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The protagonist encountered Davaeorn on the 4th level of the mine and after a short conversation he immediately attacks. He is eventually slain and according to the letters found on his corpse, he was in close contact with Rieltar Anchev.
Davaeorn has a brother, a mage known as The Surgeon, whom the player may meet on The Sword Coast. The Surgeon offers healing to the party and explains that he has an evil brother named Davaeorn, who killed their father and he regrets he didn't have enough courage to kill Davaeorn in the past. He also tells you that his brother came to this region some time ago and gives you a potion of magic blocking that should help you fight him if you ever find him.
Interestingly, a character called Davaeorn exists as a pregenerated player character option in Neverwinter Nights. In this appearance, he is an elven wizard of Lawful Neutral alignment, which is in contrast to his demeanor in Baldur's Gate, which suggests an evil alignment. Also, given that he is supposed to be killed in Baldur's Gate, which takes place before the events of Neverwinter Nights, his appearance there is inconsistent.