Caropya was the first continent that man dominated. At first, the elves controlled two of the three great jungles, while the abominable Yuan-ti controlled the other one. The dwarves quickly claimed the central mountains, forming the Iron Kingdom around the year 2200.
Then the Golden Empire was founded around the year 2450 and soon encompassed most of the rest of the continent. The Yuan-ti were all but completely destroyed.
For years, the Golden Empire endured, and there was peace between man, dwarf, elf and most of the other races. Then, in 3800, the rift to Hell opened and leads to the collapse of the Iron Kingdom.
700 years later, the continent is ablaze again, this time by a religious war between the Sunites and Moonites. Eventually peace is found, until 5500, where the Cataclysm hits the continent. Most of the continent, except for two of the forests is destroyed by firestones raining down from the heavens. The Golden Empire is no more, and a lot of people either die or leave for Arth.
With Caropya almost empty, the dragonborn suddenly appear on the continent. Coming out of the newly formed desert, they build a nation which will later become an empire. For many years, only the dragonborn and the elves live in Caropya. Then in around 6800, so much time has passed, that the Cataclysm is but ancient story told to frighten children at night, and the people of Arth descend on Caropya in order to claim it as their own.
Over the course of the next 500 years, Caropya is populated again, while the kingdoms of Arth battle the dragonborn for control of the NW part of the continent. In the end, they learn to co-exist for a short while, until the dragonborn win the war and form the Dragon Empire. As more humans arrive from Arth to populate the rest of the continent, the Dragon Empire expands and annexes the new nations and their inhabitants.