[It was Natsu's turn to not understand much.]

Yea Edolas. Remember the whole city got sucked up in this spell called Anima? Then it ended up turned into a giant lachryma by that mad king there who wanted magical power cause...They didn't have their own like we do. Oh yea the mad king was also Mystogan's dad! That was a real surprise right there.

[He's oversimplifying things and cutting ahead in the story quite a bit.]