Kaede's flying with purpose. He has Information and a little artefact to prove his Information is correct. This will be grand. He's flying and he's grinning and life's (reasonably) good (terms and conditions apply).
It is a translation spell. It will hang out on Kaede and translate things. It's not translating things right now, Keo's just actually speaking his language and does not need his translated for her either.
"I wouldn't normally call a spell like that a permanent effect, since it can be easily reversed, but yes."
"My kind of magic can't do anything that just—sticks. Everything has a charge or is finite. A translation spell would have a time limit."
"There seems to be a source, though. The wizardry spells are connected to this big well of power that seems to be everywhere."
"Do you know more about what it is than 'lots of magic people happen to be able to access'?"
"If this interests you the library's a better bet." They arrive at the destination and she shows him to an unoccupied room. "Korulen can take you shopping for whatever you need at your convenience."
"Thank you.—how should I, er, find Korulen, if I need her? Just show up at her door and knock?"
"There are a lot of dragons, but dragons of other color groups would have different powers; there's thousands of green-groups though."
"...huh. Dragons sound fascinating. What other colour groups are there?—or should I just go to the library and stop keeping you?"
She raises an eyebrow. "Blue, black, red, white, violet, and I do think you'll have the best results with the library for your various curiosities. I recommend getting Korulen to take you shopping sometime before you abruptly need sheets on your bed, though."