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The land surrounding the bay is called the Howling Fjord. It is a frozen wasteland of ice, making travel treacherous. The only known inhabitants in the bay are the residents of Valgarde. However, the water is far too cold to support most forms of aquatic life.
Early on in the Third War, during the Human campaign of Warcraft III, Arthas was enraged at the Scourge's actions in Lordaeron. Knowing it was Mal'ganis' foul play, Arthas pursued him, and was able to successfully make landfall on Northrend at Daggercap Bay.