The D1 manual actually had a blurb about the source of magic, albiet it has likely been retconned several times by now through all those books I haven't bothered reading. Anyway here it is as transcribed by DiabloWiki:
Magic is an extremely powerful force, the manipulation of which is carefully studied, frequently learned, but it is never fully mastered. Enchantments exude an aura that can be sensed by many, but years of training are required to properly exploit the Mana that pervades our world.
Some scholars use natural manifestations to explain the workings of the universe. In a common archetype, the physical world is likened to the sky while the ethereal realm of magic is set as the ocean. If we follow this line of thought, spells are much like the turbulence that occurs where the two interact with each other. During the Sin War, Demon and Angel alike wrought powerful magicks that threatened to tear the fabric of reality apart. The physical and magical realms began to blur and merge, which, in our archetype, would be the equivalent of a fierce hurricane.
The Forces of Order sought to preserve our reality by limiting the power of mortal man. As a consequence, only the strongest wills can harness more than the most basic of magical effects. Even then, much energy is lost in the transition of power between the two Realms. As a practitioner of the arcane arts grows more knowledgeable he is able to create these effects with greater efficiency, resulting in spells that are more potent, have more endurance and drain less Mana in their casting.
Trying to fit this together with modern lore, you can replace "forces of order" with the "worldstone" (texts written by the horadrim wouldn't know any better anyway) Not sure how this etheral realm energy works out in the modern view, although we saw some shadow realm where Koule was bound. In any case this parallel realm of mana is all around, just requiring some willpower to harness it and cause an interaction with our physical world.
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Trying to fit this together with modern lore, you can replace "forces of order" with the "worldstone" (texts written by the horadrim wouldn't know any better anyway) Not sure how this etheral realm energy works out in the modern view, although we saw some shadow realm where Koule was bound. In any case this parallel realm of mana is all around, just requiring some willpower to harness it and cause an interaction with our physical world.