The Faerie's Hope story takes place after the Fall of Faerieland during the infamous Y12 Faerie Festival. You can see the full details of what transpired in our Faeries' Ruin Coverage, but the app will refresh the basics for you:
When you first open the app, you will see a "Previously on..." type flashback (which you can skip if you like) with images and voiceover summarising the recent history of Faerieland. You'll see faeries living in the pre-fall Faerieland, still in the clouds. You'll see them turn to stone thanks to the villain Xandra, and then you'll see Brynn and Hanso standing by as Faerieland is rebuilt on the ground.
The new lore begins when the app reveals that a tiny sliver of old Faerieland remains in the sky, in the form of a small, apparently abandoned house still standing on a cloud foundation. The backstory for how this house was discovered is not given in the opening, but it is implied that Fyora and an as-yet-unknown Faerie Shoyru were responsible for discovering it.
The Faerie Queen stands before a single faerie who survived the fall because she was encased in a crystal of some kind. Fyora opens the crystal, and the player faerie appears as a silhouette with no name. When Fyora asks her name, she doesn't know. Fyora guides the faerie to remember her element—light—after which you can choose your name.
When none of her other memories are coming back to her, Fyora invites the player faerie to step outside and play a game to relax, with the help of Varia. It is revealed that the player faerie was found when Varia crashed into her house. At this point, the game begins.
Main Story Tasks
The main storyline of Faerie's Hope is advanced by exchanging purple Wocky Jelly, which is earned by winning levels. You can progress through the story at your own pace separate from your level progression. That is, you can complete several levels of the game and then redeem Wocky Jelly for several scenes of the story at once. You don't even have to redeem the Jelly at all, though you would miss out on some rewards.
Side Story Tasks
Partway through the second day of the main story, you'll unlock access to a place called Dreamland. Once available, you can travel between Dreamland and New Faerieland at any time.
Within Dreamland, you'll find several additional stories that you can progress through in the same way as the sain story. Here, you'll exchange blue Wocky Jam instead of your purple Wocky Jelly—this means you can only advance the side stories by playing Dreamland levels, and you can only advance the main story by playing New Faerieland levels. As before, you can redeem Wocky Jam for story scenes at your own pace, separate from your level progression.
The Dreamland stories and the main storyline are largely separate from one another, though you will see characters cross over from dreams into reality on occasion.
A bit of trivia: The Neopia Studio dream sequence is actually the original storyline of the Faerie's Hope app. In its earliest stages, the app was about building a movie studio in Neopia, rather than about rebuilding a piece of Faerieland in the sky after Xandra's destruction.