Life was probably made in Wizard City, around Unicorn Way. Wizard City is a ton of grass, lovely winds, home of Bartlbey, you can't get me wrong here.
Storm was probably made in Avalon. Why Avalon? Well storms produce water. Mirror lake, and some more watery places are all over Avalon, and one lake you had to make a bridge over to this myth girl's cabin.
Death was probably created in Ghost Avalon. It's the past, and it's named Ghost Avalon! I mean, sounds like an undead place with the word, "Ghost" in it, doesn't it? Anyways, "Gamma" finds out that Young Morganthe is studying things she shouldn't be, which gets her into a battle position. This is so where death was created.
Ice was probably made in Wintertusk. I mean- it's the ice world. We all know that it's filled with ice and snow.
Balance was probably created in Krokotopia. I mean- sand city guys... and the fire ice and storm areas which makes the elemental types. Talk about elemental shield- balance- you're set!
Fire was probably made in Dragonspyre. It is home to the dragons, and it's filled with fiery hot lava, I can't see how it couldn't be made here.
Actually the game tells you where the schools of magic come from. Fire, ice, and storm were created by Bartelby's children the dragons, giants, and tritons respectively. From Taking two of any those three and putting one with any other creates myth, life, and death magic from one of those combinations. From all those schools bieng combined together create the magic of balance. If you go to each schools class you can read the book that tells you the history of each.