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The word Duergar or Duergr is the Teutonic name for a  Dwarf, and the name Dwarf or Troll is almost universally applied throughout Europe and Scandinavia including Iceland to describe these people. Dverg is the word used in the far north and the Germanic races used the word Zwerg.  Another name for them was Bjergfolk/Bergmanlein or Hillfolk, a name derived from the belief that their main habitation was mountains, hills and caves.  Another name was Still-folk [Still Volk] because they tended to be quiet and peaceful.  In fact a number of the observations I found referred to their great dislike of noise.  The archetype of the dwarf has been attached to these names, but there appears to be evidence that the Hillfolk were real, a race apart

Grimm's Deutsche Sagen [Source Thomas Keightley]

At Plesse, a castle in the mountains in Hesse, are various springs, wells, clefts, and holes in the rocks in which according to popular tradition the Dwarfs, called the Still people dwell.  They are silent and beneficent” 

Another account which comes from Iceland confirms the general view of them as greatly revered.  In reading the following passage it needs to be born in mind that Johanneaeus  was a Christian cleric whose aim was to attempt to scorn and belittle ancient belief in order that Christianity could be promoted, so a sort of early 'smear campaign'.  Having said this, the account is quite useful as it describes the beliefs that did exist.  As Keightley says of him,  'we might be of a different opinion'

Ecclesiastical History of Iceland by Finnus Johannaeus   from Thomas Keightley

“As we have not as yet spoken a single word about the very ancient and I know not whether more ridiculous or perverse persuasion of our forefathers about semigods, this seems the proper place  for saying a few words about this so celebrated figment, as it was chiefly in this period that it attained its acme and it was believed as a true and necessary article of faith that there are genii or demi-gods....

Authors vary respecting their essence and origin.  Some hold that they have been created by God immediately and without the intervention of parents, like some kind of spirits; others maintain that they are sprung from Adam, but before the creation of Eve; lastly some refer them to another race of men, or to a stock of pre-Adamites.  Some bestow on them not merely a human body, but an immortal soul; others assign them merely mortal breath instead of the soul, whence a certain blockhead in an essay written by him respecting them, calls them our half-kin.

*The 'blockhead' was Janus Gudmund who wrote a number of treatises on the ancient people.

Luckily there were more even minded clerics around and the following quote is from a venerable Icelandic pastor named Einra Gudmund

The Holf Krakas Saga – compiled by Torfaeus Source: Thomas Keightley

“I believe and am fully persuaded, that this people are the creatures of God, consisting of a body and a rational spirit; that they are of both sexes; marry and have children and that all human acts take place among them as with us; that they have weeping and laughter; sleep and wake and have all other affections belonging to human nature and that they enjoy a longer or a shorter term of life according to the will and pleasure of God

This was the view more generally held, that they were mortal as it were, but different, a race apart, very different from homo sapiens in looks stature and nature, but in general having a large number of recognisable 'human' characteristics.  According to myths they lived sometimes as single families and sometimes in larger societies or groups.