Candelwic is a character in the Return to Labyrinth series.
Rare for a goblin, Candlewic is one of the most humanoid of the goblin designs. This, coupled with the style of Young Mizumi's headdress in a flashback, suggests a much stronger link between the Goblin Kingdom and the Kingdom of Moraine.
Candlewic shares many goblins' sense of species superiority. He is easily disgusted by Toby and only begrudgingly follows Jareth's orders. The goblins see themselves as prettier and more powerful than the "pretty" species, such as the humans or humanoids. Being that Candlewic is so humanoid, though, invites a lot of questions. We are not treated to a backstory other than he is a feared and valiant goblin warrior, serving as Mayor Spittledrum's right-hand-goblin or muscle.
This resentment climaxes during Mizumi's takeover of the Labyrinth.
If Labyrinth denizens act as psychological metaphors for the protagonists (much as Team Sarah represented parts of her personality if one wishes to see it that way), Candlewic would represent Toby's "action hero" aspirations. While Toby in real life is a skinny geek who spends all day slacking and playing fantasy MMORPGs, Candlewic actually fights, actually defends kingdoms, etc. He even berates Toby, saying this isn't one of his games or plays. His role is to force Toby to see his dreams much more responsibly.
While Candlewic is defeated in battle toward the end, the epilogue sees him perfectly fine and back at his job, so the reader is left to imagine what happened in the interim, if anything.