You have designed the ultimate play space, filled it with furniture and decorations, and now you have to figure out how to light it all up. Flickering torchlight may be the authentic lighting for a dungeon, but if you want to play, it is rarely practical. You need versatility, but you also want to create a general ambiance. Interrogation scenes have different lighting needs than fire play. You want shadows in the right places, but not on every face.
One of the biggest concerns when lighting a dungeon is space. What do you have room for and what is going to interfere with play? Low-hanging lights will catch floggers and whips. Big spotlights might get in the way of free movement. Recessed lighting can solve the swinging interference problem. Placing the lights near the edges of the room or away from equipment could help with both. Shatter-proof bulbs, with a plastic coating, are also a good idea in places where a light might get hit.
If you have a big dungeon and you want to set a general tone throughout, and then worry about the specific stations, there are several options. Rope lights are a good choice, to ring the room, and can be placed at multiple levels to give an even glow throughout. Light at the floor level can help prevent tripping, as well as assisting in recovering errant toy. Jokes about flickering torches aside, wall sconces are not a bad idea. They give light at eye level, so you can see each other more clearly. You can use bulbs that give the effect of fake firelight to create a dungeon feel without the danger of candles catching the wall on fire. Candles themselves do not have to be ruled out entirely, but you must be very aware of the dangers of open flame in your dungeon, both to the people playing and the space itself. Keep candles away from flammable materials, out of the path of traffic, and away from swinging equipment and toys. When used safely, they can lend wonderful atmosphere to your dungeon.
How do you give special attention to your scene spaces? Track lighting is the popular choice. There are different kinds, with all sorts of configurations that are easily adjustable. Often you can change it by remote, or turn on only part of the set. You can also change light bulbs for softer light or different colors. Dimmer switches can raise or lower the light as desired, though are a possible fire hazard if of lower quality. They can also be helpful at the end of the night when you need maximum light for clean-up, or even just an intense spotlight for interrogation scenes.
Take a good long look at your plans and the space you have available. Decide what kind of mood you want your lighting to support. Start with the general ambiance and then move to specific lighting needs. Experiment; try different bulbs and different intensities. You can create incredible atmosphere just by having appropriate lighting.