The Local Development Server is a Salesforce CLI plug-in that configures and runs a Lightning Web Components-enabled server on your computer.
You can develop Lightning Web Components and see live changes without publishing the components to an Org.
The local development helps you to quickly prototype LWCs and perform rapid iterations on design and functionality.
To learn more about local development visit the documentation: https://developer.salesforce.com/docs/component-library/documentation/en/lwc/lwc.get_started_local_dev
Also check the extension for VSCode documentation on Local Development Server: https://developer.salesforce.com/tools/vscode/en/localdev/lwclocaldev
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