I just manually cleaned a ton of hair algae out of my lava rock basin for my 90 gallon pond. In all of the algae contained little red worms. what are they and are they damaging to this pond.

Yea, I get those too. I don't think they hurt anything. The ducks used to root around and eat them. I think the fish like them too. I usually find them while messing around in my stream bed, rocks. Whenever I do the fish know it, they gather and hover where the stream dumps into the pond. It's Snack Time!!

it sounds like the red worms are just bloodworms (mosquito larvae)

The red "worms" are probably bloodworms which aren't worms at all but the larvae of midges (they're not mosquito larvae). Midges are basically all those little gnats that get in your face especially in the fall. The fish love to eat bloodworms.