You can find the Unknown Dungeon in 1-7 Champion's Sword. Instead of following the handkerchief left by the princess, you need to follow the pattern on the bottom right of the map: up, up, down, down, left, right, left, right. If you're returning to this level after clearing the story, the princess' handkerchief is not there, but you can follow the pattern regardless. The pattern is an reference to old Konami cheat code. You will reach a dungeon gate which will upon interacting, reveal the location of Unknown Dungeon.
Upon entering, the map is similar to Evolution Dungeon. You will fight couple mobs of monsters, blow up a stone to proceed and you will come across an android who will reward you with Video Record #001. Going right from there will reveal a Treasure Chest which will have a random Lv.10 Grade 2 Equipment. Going North from the Android there will be a Demon Altar, which you can destroy to exit the stage.
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| Normal Mode |                   File:World 19 - Pixie Forest.png
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| Nightmare Mode |
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