Fyrestone is located in the Arid Badlands of Pandora. This is the first town the player will encounter and will be dropped off to by the bus. Claptrap will introduce you to the town at the start of the game.
Fyrestone is also the place where about a quarter of the game takes place counting the areas around it (except Dahl Headlands). Fyrestone is host to a Secret Claptrap and is the place where you first encounter the Bandits (your first enemies in the game) with a simple pistol as you step off the bus. You follow a Claptrap there, and as you clean out the town you may notice quite a few boxes and skull piles--these open up for ammo and various weaponry. After clearing out the town, you gain access to Dr. Zed which will begin the storyline of Pandora and your quest to The Vault After quite a few missions, you will be given access to Dahl weaponry. One will spend their first 18 levels or so in this general area (with a few exceptions for minor side quests) until you kill Sledge.