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The Daggerfall Covenant has lots of fort sieges, helping the breton knight orders, "druids" and soldiers, protecting the common folk, and fighting necromancers. Like, LOTS of necromancers. It's also a bit similar to Game of Thrones in its overall vibe: castles, nobles houses, medieval kings and queens. Probably the most down to earth alliance.
The Aldmeri Dominion is slightly more high fantasy. You embark on a quest to help the queen prove that she is a worthy leader, and assist her in bringing the three races (altmer, khajiit, and bosmer) closer together. The zones have many mystical quests that make you think "Well, this was weird" in the end (the Old Bones quest, anyone?). Be warned, though. AD content is like 75% bosmer. Forest fatigue is almost inevitable.
The Ebonheart Pact is the nostalgia alliance, at least for those who have played Morrowind and Skyrim. It has the biggest focus in the Three Banners war, you will deal with the DC and AD attacking the Pact territories very often. And there's probably more drama and tragedy in their quests compared to other alliances.
I personally prefer the Covenant for my main, because of how it ties into the base game's main story. A lot of DC characters appear in the last zone to help you with the final battle, and you also learn some lore tidbits during the DC story that are somewhat relevant to the main quest. Also, one of the main Covenant npcs plays a very important role in a later chapter, and it just flows better if you've already forged a bond with him during the DC story.
or dig into lore
https://en.uesp.net/wiki/Online:Introduction_to_the_Lore_of_The_Elder_Scrolls_Online
The game gives you the option of playing though each faction's stories from their points of view so you get to see it from all sides. You'll realise that the "truth" one side is telling you is actually ridiculous propaganda when viewed through the eyes of another faction.