People have been evacuated, but their homes and businesses are at still risk. Animals, rivers, farming, will be impacted by falling ash. The environment may be affected with ongoing air pollution. Locals' lung function affected. Last major Icelandic eruption I recall closed down air spaces, affecting around 10 million travellers.
From the BBC article linked:
In April 2010, the Eyjafjallajokull volcanic eruption caused the largest closure of European airspace since World War Two, as a result of an extensive ash cloud.