Really a very well description of local SEO AdvisorGarage. Some good tips to follow if want to rank well locally.
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Local SEO is a subset of local online marketing (see link for broad definition).
In a nutshell, it is the act of writing/modifying your content so that when a person searches for a result that is near them (a local result) you will rank well for that person.
It's important to note that targeting your SEO results to be local doesn't just mean getting your Google Places/Business set up. You'll also want reviews from Yelp, an actual listing from your local Chamber of Commerce, and much much more.