Local position refers to an object’s position and orientation relative to its parent, while world position refers to an object’s position in the scene.
This means that an object’s local position value is the offset between a child object and the parent it’s attached to.
By default, if both objects are in the same place, the local position will be (0, 0, 0) and the child will adopt the position of its parent.
Changing the local position changes the offset, and moves the object relative to its parent’s position plus whatever offset is applied, which can be useful for moving an object when it’s attached to something else.
If the object doesn’t have a parent, its local position is the same as its world position.