As you emerge from the Dragon’s Pit Terminus Site of Grace, head east and you’ll come to a body of water, where a sleeping Jagged Peak Drake lays. The path splits into two, but you’ll want to take the one to the south to reach the Grand Altar of Dragon Communion and the Dragon Communion Priestess.
Follow this path until you can see the imposing body of the enormous dead dragon that lays across the Jagged Peak and the Cerulean Coast.
When you first meet the Priestess, she’ll speak to you about the Communion, which involves consuming draconic essence. After the short introduction, you’ll be given the option to devour the draconic essence or not partake in it.
If you choose not to partake, you can return to her at any time and she’ll ask you again. Picking devour draconic essence, will have the Priestess tell you to follow the Jagged Peak and find Bayle to devour its heart. In exchange for your service, the Priestess will give you an Ancient Dragon’s Blessing.
You can now ask about Bayle, and the Priestess will provide lore about the dragon including how the drakes that are scattered around the Jagged Peak, along with Bayle, have acted as sacrifices for the Dragon Communion. For now, all you’ll be able to do is keep receiving Ancient Dragon’s Blessings from her. You can only have one at a time, but as soon as you use it, you can return to her for another one.
Find Igon
Igon’s side quest runs parallel to the Dragon Communion Priestess, and he also wants to take down Bayle. Follow his questline until you meet him at Jagged Peak, then return to the Dragon Priestess and you’ll be able to talk to her about him.