I don’t know if this will help you or not, because it’s not for D&D or anything like it, but I wrote up the Underworld section for the upcoming Dreamland game from Exalted Funeral.
It was mostly based on the descriptions of places from H.P. Lovecraft’s stories–the Vale of Pnath, Peaks of Thok, gugs, ghouls, ghasts and all that goodness, because Lovecraft is one of the big influences on the game (less than Lord Dunsany, but still).
For my parts of Dreamland’s worldbuilding, I was generally going for the symbolic and metaphorical. I researched different cultures’ Underworld lore, and tried to wrap the creative chaos into a lawful summary (with room for many exceptions). Here’s my intro to the section (unrevised):
For every world, there is an underworld.
Wildalone - Krassi Zourkova
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The underworld cannot be mapped, but it can be reached—easily, in many cases.
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The underworld cannot be destroyed, but it can be sealed—for a time, at least.
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The underworld cannot be tamed, but it can be exploited—by the brave, maybe.
The Underworld is the first dream born of primate humans and fledgling gods. They buried their creation beneath a thin, porous patina of culture, propriety and civilization, that which we call “aboveground.”
Here in underworld churns the craven needs, feral desires and instinctual fears of humanity, including the strongest and oldest emotion of mankind, fear of the unknown.
Known or rumored entrances to this landscape without sun, moon or stars are in the Enchanted Wood, Sarkomand, Mount Ngranek, the Village of the Little Abyss, The Dark Highways and sailing the Twilight Sea. But surely others exist (ask a city’s Rat Catcher), or will exist if a Gravedigger pushes his spade just a little deeper. If ghouls can use underworld passages to reach Waking World cemeteries, dreamers can as well. Other physical portals to the Waking World—in any time period—could be found in the below, too. Furthermore, in dream, descent to earth’s inner core could bizarrely lead to outer space and other worlds.
Dream Masters running underworld adventures should strive to play up apprehension and threat. That noise in the distance? Was it clawed steps, the growl of a multi-gutted beast, the slink of a serpentine blade surreptitiously drawn from a scabbard, forked tongues clicking commands between one hunter and another or just a rock knocking into the abyss? Think of everything here as being swaddled in a vague fog—objects either coalesce and form when they are paid attention to or they were always there, submerged below the surface of perception and never noticed.
Many human cultures throughout history mythologized an underworld, often a waiting room for the dead until oblivion. Even more than aboveground, symbolism and suggestion impress deeper in the underworld. Dream Masters should consider hinting at the crude, primal urges of people through gross semblances—for example, the vagina dentata of a gug’s mouth, the sexual cannibalism of ghasts or the filthy contamination and conversion into a ghoul.
Although the underworld is inhospitable, chthonic beasts are not necessarily innately hostile the way abhumans or Nightmares are. If dreamers can speak the language of ghouls or gugs, they can Persuade or Haggle with them. The underworld may be the gods’ trash bin of discarded attempts at life that mushroomed within their own, separate universe. Like dreamland atop, the underworld is infinite.
The secret of the underworld is this: as inimical as the lightless domain is, the alternative—a blank void—is worse. Perhaps gods and humanity dreamt the underworld into existence first to make sound and fury against the significant nothing before refining the din into the more melodic upper dominion. Or perhaps this is what happens to paradise after the inhabitants leave for better real estate.
I wrote up a few random encounters for the Underworld, and one I liked is a table to meet mythic heroes on their quest: Orpheus & Eurydice, Enkidu, Ninshubur, Lemminkäinen’s mother, Phra Malai, Heracles, etc.
I suggest that for the encounter, the tables are turned: the PCs are actually NPCs to that mythic figure, part of that grand story, and the GM-controlled person might be expecting advice (or a magic item!) from the player characters.
In the Underworld, up is down, down is up, but: “Smokey, this is not Nam, this is bowling, there are rules.”