Demons, Daemons and demonic beings : the scourge...
The term ‘daemon’ was originally applied to divine beings other than gods and demigods. However, the word now also encompasses godless demons from Limbo as well. The term ethereal beings is also applicable.
Daemon – a.k.a. Hellbeasts. Although all (non-deity) divine beings can be called by this word, it is particularly applied to those who serve evil gods. Daemons inhabit the lower planes of reality, all the way down to the Abyss where even the darkest gods refuse to dwell. These creatures serve the god who created them in their own realm, and will sometimes find a way through the Veil to enter the Prime Material Plane to carry out their dark master’s bidding there.
Demon – originally this was a term reserved for divine beings who serve no god. Mostly these arise from the chaos realm of Limbo beyond the borders of reality and planes of existence. These creatures would have served the Chaos God Ultharis, but since he was destroyed they have no master save themselves. The term is also applied to evil nether-entities including hellbeasts (demon animals).
Demons and their Ilk... A to Z