Tolkien is responsible for reviving the older and less-used terms elves, elven, and elvish rather than Edmund Spenser's invented elfs, elfin, and elfish. He probably preferred the word elf over fairy because elf is of Anglo-Saxon origin while fairy entered English from French.
Scandinavian mythology includes light-elves (Lioslfar) who dwell in the third space in heaven, dark-elves (Dcklfar), and black-elves (Svartalfar). The black-elves were skilled smiths, and the most skilled were reputed to be the sons of Ivaldi, the father of Idun.The elves (light-elves) are often mentioned along with the Aesir, instead of the Vanir (a race of gods). The names Vanir and Alfar (light elves) may have been either synonymous, since the expression "Aesir and Alfar" meant "all the gods", or designating a difference in status between the major fertility gods, the Vanir, and the minor ones, the elves. The Van Freyr was the lord of lfheim (meaning "elvenhome"), the home of the light-elves, and he had as servants two elves: Byggvir and Beyla. Like the Vanir the elves were associated with fertility and, in late fall, the "alfablt" (elven sacrifice) was performed in the homes. It was secret, no strangers were allowed in the homes, and so next to nothing is known of it.
The Brothers Grimm fairy tale The Shoemaker & the Elves is probably the most famous original elf tale. The elves are only one foot tall in this story, naked, and like to work on shoes, as leprechauns do. When the shoemaker rewards their work with little clothes, the elves are so delighted, that they run away and are never seen again. (This tales is echoed in J. K. Rowling's Harry Potter stories: see below.)
However, in Elizabethan England, Shakespeare imagined elves as little people. He apparently considered elves and fairies to be the same race. In Henry IV, Part 1, i. 4, he has Falstaff call Prince Henry, "you starveling, you elfskin!", and in his Midsummer Night's Dream, his elves are almost as small as insects. On the other hand, Edmund Spenser applies elf to full-sized beings in The Faerie Queene.Elf, fairy, and other terms for nature spirits like pwcca, hobgoblin, Robin Goodfellow, the Scots brownie, and so forth are no longer clearly distinguished in popular English folklore, nor are similar terms in other European languages.Before they became diminutive and whimsical, elves were probably akin to powerful pre-Christian forest spirits like the woodwose, the Green Man, and the drusi in the mythology of the Gauls beings to be respected and even feared. A trace of the former importance of elves in Germanic culture exists in names like Alfred (Old English lfrd, "elf-counsel") and Alvin (Old English lfwine, "elf-friend").Post-Tolkien literary elves (popularized by the Dungeons & Dragons role-playing game) tend to be human-sized or only slightly smaller than humans, and tend also to be capable warriors, especially skilled in archery. Terms like hob or brownie or other genuine regional folklore terms are seldom used of such creatures: they are unlikely to sneak in at night and help a cobbler mend his shoes. The canonical role-playing style elf is Deedlit, a major character of the anime series Record of Lodoss War.Little documentation exists on English rustic beliefs and terminology before the nineteenth century, but it seems that the term elf was used, at least on some occasions or in some places, for various kinds of uncanny wights, either human-sized or smaller. But other terms were also used.