Most of it is good you're just a little off on a few things like with the lords what happened at the start was the first flame came into existence (kinda like the big bang) and brought disparity into a world that used to be unchanging and unending. And out of the darkness the hollows emerged and came across the flame and within it they found souls the 4 that found the most powerful were izalith who found the life soul and spilt it with other hollows to create her daughters and other things. . Nito found the death soul and spilt it to create the dead and other things. Gwyn found the light soul and split it to create his silver knights and other things. The furtive pygmy found the dark soul and spilt it to create humanity.
Other hollows probably would have found less powerful souls which can explain some of the other things like giants.
In this world that now had disparity it caused things to change and different beings came to be like the primordial (world) serpents who learned that the the logic of the world was changing and that gwyns age of light was next so they went to gwyn and told him that his age of light was next and that after would be the age of dark and with this knowledge a fear started to grow in him because he didn't want to lose his rule.
The ancient dragons also started to change and seath was born without the immortal scales of his brothers and with this came a fear of death which grew and grew until he went to gwyn and told him that his bolts of lightning could remove the dragon scales so gwyn rewarded seath with a part of his soul and made him a Duke that could have royal children (until pracila was born then gwyn saw her power and created the painting and put her in their along with other things he feared and cursed it to rot so that they would have to burn their world and start over if they dont want to be consumed by the rot)
So gwyn went to the other 3 lords and got together with their armys and went to war with the ancient dragons and as gwyn saw humanity and their abyss forged weapons killing the dragons his fear grew even more because he saw they had actual power that might be able to overthrow him so he cursed them by placing a seal of fire on there armor(most likely said that it was a good thing)and it slowly started to trap their dark soul.
After the war gwyn granted the pygmies the ringed city and his daughter fillianor to "protect them" ( hide them away from the world) and then he started to build his religion of him being a god and since the humans dark souls (humanity) had been trapped away they began to forget what they were and a white soul took its place and they started to live a false life but eventually a pygmie king ( the mad pygmie king) was born that embraced the dark and so shera (daughter of seath (the Duke) impaled him with her spear but he would not die because of his dark soul so she locked him away forever.
During this time some humans started to spread around the world and create different cities like new londo and gwyn sees this as a opportunity to sow more of his lies so he appointed 4 governors of the city and gave them a part of his soul and had them doing what he wanted.
So the primordial serpents see all this going on and there becomes a divide between them because frampt believes that gwyn has altered the world logic so that his age of light will continue (so he preaches gwyns lies) but kaarth believes that the dark age of humanity will still happen.
So kaarth sees the city of new londo and decided to tell the 4 kings about their origins and gave them the ability of life drain in the hopes they would use it to try and find a way to permanently sustain their dark soul(humanity) but the 4 kings instead took the power and used it for their own goals.
Then gwyn saw this and appointed artorias as a knight and sent him to kill the darkwraiths because he was the best equipped but he failed and had to retreat so the healers of the city (part of the church and religion that gwyn had there) became the sealers and flooded the city.
At some point (not sure when could have happened at a few different points in time) manus (possibly the furtive pygmy) left the ring city to go to the land of light sorcery possibly to learn about time magic (because he was a sorcerer) which then caused gwyn to send the lords blades to kill him because gwyn couldn't have him possibly learning something that can undo his rule and so manus was buried there and hidden
Kaarth also sees this so after his failure with the 4 kings he goes to the city of oolacile and tells them that manus is buried there with the hopes that they would try to learn from it but they were too eager and disturbed manus causing his humanity to snap and busrt out of him consuming everything around him (like a wild animal thats backed into a corner) im search of the last tie to his former life a broken pendent but instead he finds princess dusk and takes her captive.
Gwyn sees this happen then send knight artorias to fight the dark but this dark was way stronger because it was spawned from manus one of the pygmy lord's (possibly the furtive pygmy) and artorias fell corrupted to it and then our character comes along and kills artorias and manus's stopping the spread of the abyss in oolacile.
Now to what happened with humans they were sheppard by gwyn into believing his religion that he was their God and they embraced the white soul as their own this caused them to assume a fleeting form one that can die so humans would live their life then die and be buried and forgotten but as the natural end of the age of light got closer more and more of the humans dark souls were breaking free (causing the dead Huma to rise) and slowly consuming the white soul which the humans thought were their life so each tie they die the dark soul (humanity) is able to eat away at more and more of the white soul making the individual forget who they are but since the dark soul is still shackled it cant fully take over meaning that the individual reverts to its natural form before it ever had a soul a hollow but the dark soul in them is still trying to get out so they instinctively feed on others to suppress this by giving the dark soul something to feed on.
So as gwyn began to learn that the dark was breaking free from its shackles he decided he needed a more permanent solution so he used his religion to tell humans that they needed to link the fire (restart the age of fire) so that they could live and die (gwyn made them believe that was what was supposed to happen)
And then as his age almost reached its end he sacrificed him self to link the flame so his age would continue
Now onto izalith (this happened before gwyn linked the fire but not sure when exactly)
After the war gwyn gave izalith her own relem to rule over as long as she still bowed to his rule but as time when on a deep ambition began to grow in her and she wanted more so she set out to create a flame of life woth her own soul but life is chaotic in nature so when she did this it lashed out transforming izalith and two of her daughters into the bed of chaos as well as ceaseless discharge but then izalith and the two daughters managed to bring chaos under control and with that was able to spawn chaos demons which are a chaos parasite living in a host body which transforms the body into something else this process would have been voluntary with the exception of izalith and ceaseless discharge
So gwyn sees that izalith has defiled his rule and believes that its another threat to his age of light like the dark was so he takes his army of silver knights and goes to war with izalith until eventually both sides are weak and Gwyn accepts a pack with izalith to leave them in peace as long as they stay quietly in izalith amd this pack allows gwyn to fill his army with demons like the asylum demons and others.
