I went to Iceland the other week, when Grindavik was evacuated due to volcanic activity. I’d taken my drone, but unfortunately the various sites I visited had drone bans in place.
Fortunately I’d taken my DJI Pocket 2 with me, so managed to get some footage.
Here’s one of Þingvellir National Park, where you can walk between the North American and European tectonic plates.
My many trips to Iceland are why I upgraded from a DJI Mini 1 to a Mini 3 - the wind is frequently too much for the Mini 1 
I was at Meradalir whilst it was erupting last year, but it was too windy to get much flying other than in the more sheltered Nátthagi valley (ie the previous year’s lava).
I think if I go back again, I’ll hire a car to get away from the more touristy sites. The only place I could have flown on this trip was at the Black Beach, but unfortunately it was gale force winds.
Definitely - we tend to hire a car, drive about 400km a day to a different hotel each day. You get to see the areas that most tourists never do. I think there’s only about 100km of tarmac road that we haven’t driven on, and we’ve been across the Highlands twice.
Also try to get up north, there are now direct flights to Akureyri from the UK, although getting the internal flight from Reykjavik City Airport is fun in its own right. The south west is very crowded, whereas you can often drive in the West Fjords or the east coast and not see another car for an hour or more on a main road.
Message me if you want any recommendations or information - we go every 18 months or so, and my Icelandic is getting better each time. I assume you’ve already been on the flydrone.is website to know the local regulations for drones etc.
I went to Þingvellir National Park in April with my daughter in a hire car. Before I left, I emailed the national park and asked if drones were OK to be used. They replied in the affirmative, but sadly it was way too windy for most of our short visit.
Thanks for the heads up. I’ve just checked their website, where it says drone flying is allowed, but there are restrictions. The part I’ve shown in my video, they want people to fly before 9am or after 6pm. In the winter months this isn’t viable, as you’d be flying in the dark. Definitely one to remember if visiting in the Summer though.