The idea here is to stop nasty redlinks appearing on information transcluded from the Lore namespace into game spaces.
For instance, it's perfectly valid for the Oblivion:Abecean Sea article to transclude Lore:Abecean Sea but because of prior links, the Oblivion one gets redlinks to places like Hammerfell and Valenwood. We don't want Oblivion:Hammerfell and Oblivion:Valenwood pages because those ought to link to the Lore space.
This template will try the local namespace first, then Lore, and then display a non-link.