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Animals can be found both wild and domesticated in The Legend of Spyro series. In The Legend of Spyro: The Eternal Night, it is mentioned that there is evolution, as some of the creatures in Ancient Grove have adapted to the poison flowing through the grove that they are nurtured by.
Most of the domesticated animals (excluding the subspecies of Death Hounds) are ridden by Spyro's enemies, both Apes and the Skavengers. They also serve as opponents for Spyro.
Wild animals have been seen in the Ancient Grove and the Swamp, as well as several other locations in the The Legend of Spyro series. A majority of them serve as enemies.