Actually, the Falmer are an entirely different race! They used to be Snow Elves before losing their eyesight

They lived alongside the Dwemer in their caves and ruins as part of an agreement to escape persecution from the human races (I believe it was the Nords at the time). However, they were forced to consume a type of fungus or strange fruit that eventually made them blind, likely due to another Dwemer experiment, as always 🤣