So, the rustic town of Shadowdale is the home base for Ed Greenwood's second campaign (the other being in Waterdeep), in terms of soft culture both the Dalelands and Sword Coast are part of the "Heartlands" where standard 70s AD&D social assumptions (Medievalized Midwestern Americana/Canadianess) prevail.
In terms of material culture, the "Dales" are sparsely populated rural areas between large stretches of ancient Elven dominated forest, though now with less Wlves. Sort of like if The Shife was a bunch of clearing (Dales) between sections of Mirkwood, but with a Wild West vibe. Shadowdale is where people going to Myth Drannor to plunge into the megadungeon that is Elven Khazad Dun (what if Lothlorien became Moria??) for riches operate out of.
Their neighbors to the North, West, and South are aggressive and expansionistic, but the Monster infested forests actually insulted the Dalelands from larger nations.