Wikipedia's article on the barghest says that, in the account by William Henderson, a shapeshifting barghest was said to live near Darlington. It could appear as a headless man who vanished in a flash of flame, a headless lady, a white cat, a rabbit or black dogs. Henderson also noted another barguest in an uncanny looking dale between Darlington and Houghton near Throstlenest. Henderson's book (Notes on the Folk-Lore of the Northern Counties) was first published in 1866 and revised in 1879.
A haunted places directory places the Darlington creature at Glassensikes, described as a stream area, and lists the same forms. It says the origins are scarce and speculates freely about meaning, which should be ignored. I have not been able to read Henderson's own page to see exactly how he located it.
As with all barguest tales this is a folklore creature, a death omen or hobgoblin in some tellings, rather than a modern sighting. It is tagged traditional. The pin is central Darlington because the exact places are not securely identified, so it is approximate.
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