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The key can be safely picked up after pulling the switch to shut off the fire traps located by the Eygil's Idol bonfire.
The door leads to the area with the Flame Salamanders.
- Oddly, the Iron Key's description only refers to stories from the Iron Keep, and it is found across the Iron Bridge near the Iron Keep, all the while the door that it opens is found in the Forest of Fallen Giants. However, the story also mentions plunderers who stripped the iron from the Iron Keep castle, and since the door that the key opens is made of iron, there is reason to believe that the door itself was stolen from the castle, along with its key, and placed on its current location.