Dagoth was the spawn of Dagon, presumed to be one of the Old Ones (or possibly a degenerated god).
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History
Dagoth was worshipped by the people of Kalumesh, while at the same time he came to become a worshipper of Shuma-Gorath. He was gifted the Starstone by Kulthas of the Green Planet, a fellow worshipper. Eventually, the city of Kalumesh was sunk by the "Elder Ones who represent good", but Dagoth continued to inhabit the waters surrounding it.
As the reawakening of Shuma-Gorath came closer, Dagoth attacked Henry Gordon and his housekeeper Blondine when they discovered the sunken ruins of Kalumesh. The two were saved by Doctor Strange, who happened to be flying overhead, and he forced Dagoth to retreat.
Later, Dagoth took control of Blondine, who was in actuality the reincarnation of one of his ancient priestesses, and used her to release a great power from the Starstone that had washed up on the beach that Dagoth used to enslave the inhabitants of the nearby village, but was once again defeated by Doctor Strange and banished to another dimension.
Dagoth returned to reality after the dissolution of The Barrier and raised Kalumesh from the ocean. He was later defeated by the Three Mothers and fed to their master, the Peregrine Child.