A local installation of WordPress differs from a live website in a few ways.
First of all, no one else can see your website. This is a private environment where you can learn WordPress basics such as how to build a website or gain the skills you need to pursue a career in WordPress.
You can also use a local WordPress installation to try out different WordPress themes and plugins and test their features before installing them on your live website.
It’s common to use software like XAMPP to create staging sites. These are used for testing changes before making them live, letting you catch errors before they break your live website.
Besides this, web designers can use local installations to show different website designs to their clients before they go live, and developers regularly use local sites when creating WordPress plugins and themes.
Finally, with a local installation of WordPress, you won’t need to pay for web hosting or a domain name, which will save you money.