Magic is common in mythology but uncommon in reality. It exists and people know about it but few actually get to experience it. Some parts of the world are more accustomed to seeing magic but even there those who wield it are rare.
The world is dangerous and mostly unknown. The majority of people you know will have never stepped foot beyond their empire’s reach. Stories of what is beyond are told by the adventurous few that come back but less than half of it is believed.
The world has many, many races of varying social acceptance. Humans, dwarves, elves, and halflings are commonplace and accepted in most cities. Kobolds, trolls, ogres, and goblins are familiar but looked down upon. They typically fulfill lower class work, such as basic labor, if accepted at all. There are a lot more races that live on the periphery or in unknown territory but not much is known about them.