The setting in a narrative is the time and place in which the story takes place. The setting may be as limited as a particular room or as general as a country, while the time may be a specific hour or an era in history.
The setting is important to the narrative because it helps readers make a connection to the story. It also assists readers in picturing the action and helps to set the mood. The setting is sometimes symbolic of what is happening in the story.
In many cases, the author specifically tells the reader when and where the story occurs. Other times, readers must glean this information from the narrative's various details.