He is said to write the story of Labyrinthia, the townsfolk believing that anything he writes becomes real. He holds festivals where pages of the new story he writes would be distributed to the villagers. The ink he uses to write however, is actually from a flower that it's vapours have an effect like mind control, making everything the townsfolk read seem believable and turning it to a reality.
He created the town of Labyrinthia to help Espella cope with her trauma of setting the town ablaze and blaming herself. It was acted out in front of her ever since she was a child and it grew and grew until he took advantage of the mind controlling effects of the flowers in Labyrinthia to make Espella's fantasy world believable and making witches exist. Stunts of magic were pulled off by giving instructions to the people who were mind controlled that they cannot see "pure black", and machinery was hidden all around town. "Witches" were also giving certain rules, such as needing a Talea Magica, a witch's scepter so Shades, who disguised themselves in pure black cloaks and worked for the Storyteller to pull off stunts, can tell who can cast spells, as well as needed to mutter the spell so they know when to act. Shades then rang pure silver bells, which due to the town's odd effects from the ground water causes them to fall unconscious upon hearing the sound of pure silver, and made the "magic" happen.
Wanting to create an ending to Labyrinthia's "story" since he was suffering from an illness, it was a story where it would end in his death and The Great Witch Bezella, supposedly Kira, and the town would be free from the story. However, unexpected events happened and Layton informed the Storyteller that the accused was actually his daughter, Espella, who was framed as a revenge from Darklaw, who blamed the Storyteller for her father's suicide.
The shock of this news makes him go and testify at the trial of Bezella, revealing the truth behind Labyrinthia.
The end scene shows Espella, Darklaw and the Storyteller to forgive each other and the Storyteller goes to have an operation to cure his illness, the cure left by Darklaw's father, Newton Belduke as a "last gift from a true friend".