When you enter Dragonspyre, you will be sent to the Library to speak with Milos Bookwyrm about the Dragon Crystals. You will find him inside the doors and slightly to the right in the Atheneum. You really can’t miss him.
Once you have completed Professor Drake’s quest for the crystal, talk to Milos again and he will tell you about the History of the Dragonspyre books.
He explains how he has nearly forgotten what he once knew, but what might help is if you could bring back the seven volume series of The History of Dragonspyre, which were hidden for protection.
Once you receive the quest, keep on the look out when you enter buildings for battles. The books are usually somewhere in the room with the ‘boss’ you’re fighting.