Located in the “Lady Llarel’s Shelter” public dungeon. Start at Obsidian Gorge Wayshrine and head northwest. As you go uphill, you will eventually run into Redolent Loam Dolmen. Across the Dolmen, to the north, is the entrance to this public dungeon. Once inside, follow the path, and inside the second cave gallery you will see the skyshard next to tree roots. Be careful though, nearby is a strong, level 17 NPC that can be easily overlooked in the darkness.
Wntrance to Lady Llarel’s Shelter is shown above (part of Redolent Loam Dolmen is on the left).
The location of Lady Llarel’s Shelter on the world map.
The second cave gallery is where you’ll find this shard .