Driving a bit farther north on road 1 to a second recommended destination nearby -- volcanic craters. Areas on the map that looked like they might be towns usually ended up being local farms (often with brightly painted roofs, and a portion of the building set into the hill).
Passing the small 'town' of Bifröst to visit Grábrók Crater -- actually a set of 3 volcanic craters with stairs leading up to the largest. The sign for "NÁTTÚRUVÆTTIÐ GRÁBRÓKARGÍGAR" points up the 570 wooden stairs leading up to the top.
The weather is a bit overcast at the moment, but it changes from minute to minute here. The dark volcanic soil is softened by green moss and grasses as I continue to climb the wooden stairs. By the way, there are almost no trees in Iceland. Makes me wonder where they got the wood for the stairs.
