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The Volkihar Undercroft was originally an old escape tunnel out of the castle. After installing Castle Volkihar Redux and the Dawnguard quest Touching the Sky has been completed, the Undercroft transforms into a bustling underground vampire black market.
The Undercroft is located just below the castle. There are 3 doors into the Undercroft and one trap door which is one way only from the main Keep or guild hall thrall prison above.
The flea market includes a blacksmith, archery sales, fish sales. Even the castle Draugr guards have a vendor who supplies replacement parts.
Many new NPCs are added that will traverse from their lairs across Skyrim to visit the Undercroft's new vampire black market. Visitations depend on the time of day so it will all vary. Two Volkihar drauger castle guards patrol the Undercroft.
Some of the NPCs will wander into the castle to drink, and socialize with cohabiting vampires within.