There are endless words and spelling variations for the Fae realm and beings within it, as varied and and hard to pin down as the Fae themselves.
Traditionally, the common "fairy" spelling that we see in America seems to us to generally refer to the popularized "Tinkerbell" or Victorian style fairies - small human shaped beings with wings and sparkles that flit about and cause mischief, while occasionally, perhaps accidentally, being helpful. These fairies, like Tink, are just as important and authentic as all the rest!
When we spell Faery or Faerie with an E, we mean to be more inclusive of all of the magical beings of the Fae or Fay Realm - from earth spirits to angels, galactic singers to dryads and pookahs, gnomes and goblins, mermaids and selkies, harpies and unicorns, faeries hundreds of feet tall or too tiny to see, those shaped like insects or animals or plants or stones, beings of pure light and energy or shadow, and everything in between.
We usually use the word "Faerie" to refer to the Realm, or the many varied beings within that magical realm. "Faery" often indicates an individual, or a type, but not always.
Fairy, Faery, Fairie, Faerie, Fayrie, Fhairy, Phhaerryyee, Fae, Fay, Faye, Faeye, Phae, and on and on, it's all acceptable and all magic.
Blessed Be!
(Similarly, Serafaery is Sera, Sera Fae, or, in the human legal world, Sarah Faye - all are acceptable and welcome names.)
