local traffic = traffic that comes from the region (village, city, country, etc) that your business operates in. So, for example, if you have a roofing business in London you obviously want traffic from London only as there's no point in people from Dallas or Paris finding your site because you won't travel to Paris / Dallas to repair their roofs.
So, if you have a local business you obviously want to rank in the region that your business operates in, so that google can deliver you only targeted (local) traffic, but how you can rank locally I don't know cause I never tried it, so I'm not the best to give advice on how to rank locally
And organic simply means traffic from google's rankings, not from their ads system (called Google Adwords... or I think they've rebranded into Google Ads nowadays).
When you google something you know how the first few results (2-5, depending on keywords and locale) at the top of the page (and sometimes on the righthand side of page, as well) are tagged with a barely visible "Ad" tag? Well, those position in google are NOT organic results, so if you want people to click on those results that are tagged with the "Ad" tag you need to create a Google Ads account and pay google to put your ad in that position.
But if you don't want to appear at the top of the results page, then you can rank below those ads by doing SEO. And if you manage to rank below those ads then you will get organic traffic, ie. traffic that comes to your site organically, unincentivized by google, you, or anybody else. But to rank there... well... that's where SEO comes into play