A world boss used to spawn there, one of the dragons from the Emerald Nightmare.

I can't answer your question, but thanks for asking it! I haven't seen that location before, but it sure goes onto the list of "Places that might have a very cool story attached to them"... several ones come to mind.

I think its just a graveyard for players to rez at after wiping to the old emerald nightmare bosses. Blizz went through alot of trouble to make the graveyards look nice during the tail end of Wrath.

I remember when Death Knights were still OP, I thought I would go up there and take on the world boss dragon. Sure, she was a level 60 raid boss, but Death Knights were OP at the time. Three hits later I was running, and she killed me.

My guild went around killing all the World Dragons a little after I started playing sometime in Wrath. We decided that Friday was Dragon Slaying night.
(All of them were up except the one in Duskwood.)

We brought everyone who was online at the time so it was a handful of 80's and a lot of lower levels. I think I was maybe level 60 at the time on my DK. There was a lot of death and a lot of laughs.

I miss those dragons.