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Lua is pretty widely used. C is also favoured but it's pretty easy to misuse so there are teams that shy away from it. I've seen Perl, Python and PHP, too, as well as some obscure languages. I distinctly remember seeing Tcl, but I don't remember the context so I might be bullshitting here.

It greatly depends on flash and RAM though. Past a certain point, Python or PHP are just too large.

A few that I've come around and evaluated are

https://wiki.strongswan.org/projects/strongswan/wiki/Libfast + http://www.clearsilver.net/

http://appwebserver.org/products/appweb/server-side-javascri...

http://duda.io/

http://luci.subsignal.org/

i would be interested into your evaluation of Duda I/O, let me know your comments.

The UI (and maybe other parts?) of AVM routers ("FritzBox") is written in Lua.

My router from D-Link uses php (at least it has php in the URLs). I've seen some that use custom C programs with a webserver (cgi-bin) too.

Almost everyone use Lua.