From WoWWiki

Halycon's Lair is an area of Lower Blackrock Spire, and the domain of the Halycon and Gizrul the Slavener. They breed a pack of fierce worgs that the Blackrock orcs use as mounts and pets. In return, Halycon and her brood are fed captured Dark Iron dwarves, whose gnawed carcasses litter the cave floor.

Halycon's Lair is found to the right upstairs from Urok Doomhowl's ledge. The Storehouse is left down the hall.

Subzones of Blackrock Spire
Blackrock Stadium • Chamber of Battle • Dragonspire Hall • The Furnace • Hall of Binding • Hall of Blackhand • Halycon's Lair • Hordemar City • Mok'Doom • The Rookery • Skitterweb Tunnels • Spire Throne • The Storehouse • Tazz'Alaor