In days of old, when dragons ruled the earth, there lived mortal men who worsipped the beasts as gods. These dragon priests are long since dead... but something has awoken them from their slumber.
They were servants of Dragons and worshipped them as Gods.
Pretty much this. The main difference of them versus the Draugr, are they were the leaders of the Dragon Cult. They were granted masks of great power and were pretty handy with magic. Draugr are more like the soldiers of the Dragon Cult, though some stronger ones (Deathlords) learned shouts.