Local SEO is the practice of optimizing your website in a specific local area. If you have a local business such as a restaurant, shop, etc. then local SEO will help you to reach your website at your targeted local place. Local SEO is making sure that through your website local people can connect with you online as well as offline.
If you optimize for local searches, you focus on letting Google know — through all kinds of signals — that your business is located in a certain area and wants to be found by customers in that area. Ground-rule these days is that it’s by far the easiest to optimize if you have a proper address in a region/city. This allows you to create local landing pages and help people find your shop with a store locator on your website.