Dyrhólaey, Iceland. Dyrhólaey is a small peninsula on the south coast of Iceland, near the village of Vik. It is a former volcanic island that formed about 100 thousand years ago. It has a huge black arch of lava that reaches out into the sea, which gives it its name, meaning “door hill island”. Dyrhólaey is a popular tourist attraction, as it offers a panoramic view of the surrounding landscape, including the Mýrdalsjökull glacier, the Reynisdrangar sea stacks, and the black sand beaches.