|“||Only thing we could, ran! But towards the icefall... and into the Labyrinth of Lost Souls! Iced in, our only chance was to forge on, deeper into the tunnels. Twenty days, we wandered. Lost. Going in circles.||”|
|— Arngrim Dammen on one of his escapades|
Based on the commentary of Arngrim Dammen, the Labyrinth of Lost Souls is located adjacent to the Ice Needles on the coastline and the volcano, Utgard-Loki. Presumably, they are a complex network of caves around or under Utgard-Loki. They also connect to the Jotun Hot Springs.