Localization is concerned with the adaptation of software so it can be used in different locales. A locale is linked to a region where certain cultural aspects apply such as language, formatting of dates and times, calendaric representation, and so on.
Since Moodle is used throughout the world and given the fact that many educational establishments spawn across continents, it is important that localization is fully supported. The key areas in which Moodle can be configured are language-related settings and calendaric information.