Magic in Nailara is still a wondrous thing - few spellcasters have the skill or time to learn access to the most powerful spells. A city with a teleportation circle is an incredible feat, and individuals capable of casting raise dead could command massive salaries from wealthy nobles who want them on call. Magic items more powerful than a trinket or potion are jealously guarded, and often only available through auction.
To prop up the lack of individuals able to cast these sorts of spells at the drop of a hat, magical rituals are a much more important factor in this setting. A city might not have a mage on hand that can simply cast teleport, but with their combined ability and time, they may be able to replicate it. Such tasks are case-by-case, requiring much more attention to be paid to things like planar alignment, fonts of magic, and the like. It can often take years to perfect a single casting on a specific target.
Common Knowledge
So what does the average townsfolk or farmer know of magic? Generally only what is relevant to their day to day. Everyone knows that magic can do a variety of things - mending a wound, making plants grow, fantastical illusions, and horrible devastation.
Few would be able to identify a spell by name, but many would be able to recognize its effects. A traveling entertainer might use illusions as part of their performances, a priest may have healed them of a broken bone. They may know it's possible to bring someone back from the dead, but also that such a feat is beyond almost anyone's ability.
Magical items are a rarity, stuff of legend or nobility. A town may have a healing potion for emergencies. A magical sword is a rarity, and almost all have a story behind them.
Monsters and magical creatures roam the world, but for most of the simple folk living their lives, those are just stories from far off lands. Everyone has heard of dragons and giants, but few expect to ever see one.
