The archaic language makes this fairy tale seem a little like those of the brothers Grimm. The hero is handsome and brave, the heroine is virtuous and beautiful, and the story is a small story nicely told.
There are jarring notes. Ugly equates to evil in the dwarf, although nothing we see him do justifies this. We are told that the beautiful lady is evil, but never see her do anything bad, only the maid/heroine claims to have seen it. And the hero sleeps with the"evil" lady - apparently because she wants him to, despite his love for the maid.