The Outcast Lands is located rather close to the Isle of Berk, which is adjacent from the South. Adjacent from the East is the Mainland. Adjacent from the Southeast is the Peaceable Country. To the West lies the Visithug Territory, and to the Northeast lies Nothing and the Frozen Isle of Nowhere.
An image of the island also appears at the front of the book on a map from Grimbeard the Ghastly.
The Outcast Lands are mentioned briefly during Book 4. The seas are completely frozen over in the Inner Isles during a very harsh winter. However, as Hiccup and Camicazi are escaping from Hysteria by sleigh across the Sullen Sea, the ice cracks and there appears "a split that ran all the way from the Outcast Lands to the north, down to the Bog-Burglar islands in the south."
As told in How to Break a Dragon's Heart, historically speaking, the Outcast Lands is where people banished from their tribes were sent to, hence its name.
Around a hundred years before the events of the How to Train Your Dragon book series, Thugheart was banished here for his treachery that lead to the downfall of the Kingdom of the Wilderwest. Thugheart united all the inhabitants of the islands and formed the Treacherous Tribe, and became its first Chief.
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