excerpt from the article Creatures in Norse Mythology via Life in Norway
Said to inhabit the realm of Alfheim, under the rule of the God Freyr, the Elves were tall, slim demi-gods with pale skin and hair, who were more beautiful than the sun.
On the whole the Elves kept themselves away from the affairs of humans, appearing only occasionally to either cause or cure illnesses, based on their whims. They were a very fluid race and did not subscribe to the normal gender roles of humans. Elves were often portrayed as morally ambivalent.
Some sources distinguish Elves into two different groups – Dökkálfar and Ljósálfar – Dark Elves that are ‘blacker than pitch’ and Light Elves that are ‘lighter than the sun’.
This is disputed by many scholars, and the Dökkálfar could either be an attempt to introduce the ‘good vs evil’ concept or they may be Dwarfs under another name.
Either way, it’s clear that the Ljósálfar are what we have come to know of as Elves.