The Queen of Blades is a character mentioned in the lore of Fable and Fable: The Lost Chapters.
The Tales of Albion states that she appeared with Jack of Blades and The Knight of Blades (together known as The Court) from The Void. The Queen and the others are said to have demanded that all the inhabitants of Albion bow down before them. When they were refused, they "burned Albion until the earth turned black and the sky was thick with smoke". When the people refused a second time, they lifted the sea into the sky and flooded the world. The third time they demanded worship they said they would bring peace, but again the people refused, so the court twisted their minds until they went insane. Finally, the people of Albion bowed to the court.
Fight with William Black[]
On the Tales of Albion website, it states that the fight that took place between the Queen of Blades and William Black (who already had defeated Jack and the Knight of Blades) lasted for many weeks, and did such incredible damage to the land that it formed mountains and valleys. Eventually, William Black slew her, and freed the people of Albion.
It's interesting to note, that sometimes in TLC in Bowerstone South some girl may say: "I'm the Queen of the Blades".