You don't do anything. They just sit there and there's nothing you can really do about it other than move it to the bottom of your scroll. For the first 24 hours, they count as an egg on your scroll still (so if you have 3 living eggs and 1 egg that just died, you won't be able to take another one for 24 hours). After that, it sits on your scroll for two weeks, and then disappears. This can also be said for dead hatchlings and adults (except the adults are exempt from the rule about taking up a space for 24 hours).
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Wait two weeks and it will disappear.
On Dragon Cave, you can not 'create' dragons. These dragons are found on the main page, either in the abandoned section or on the bottom of the page. Then they are either eggs or hatchlings, and if they get enough unique views, become adult dragons.
Magistream,Valenth,Eggcave,Unicreatures and Chicken Smoothie ^^
If you mean the friend area called Dragon Cave, these are the Pokemon that will live there when recruited: Bagon, Shelgon, and Salamence.
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