i just started the game.

when i look around and move around i think im constantly looking at the floor?

how do i change this.

or is it normal?

Check your controls; there are keys you can use to shift your view upward and downward. I don't know what they are, because you can also change your controls to view-based interface, which lets you look around with the mouse, like most any other first-person game. (Daggerfall was one of the first, so the standard WASD + Mouse control set wasn't quite solidified back then.)