The Report/Label Saved Settings screen Local Settings include those settings saved to be available only on the Current Register.
Local Settings are displayed directly beneath the Last Used setting and above the Shared Settings (which are available to all Registers).
The main reason to create Local Settings is have Report and Label settings which are specific to certain Registers. For example, the jewelry department Register#1 might need to run one kind of Transaction Report while the clothing department Register#2 might run a very different Transaction Report. Then, if the back-office is configured as Register#3, it could run all of the Accounts Receivable, Inventory Database, and Purchasing reports using its Reports Local Settings. Additionally, Labels Local Settings could then be saved that allow the jewelry department Register#1 to print one type of price tags and the clothing department Register#2 to print another.
See:
Report Manager Contents
Label Manager Contents