An Azure region is a geographical area that contains at least one, and usually several, Azure datacenters connected by a low-latency network. When you create most resources, you choose a region, such as East US or West Europe. The region decides where your resource physically runs and where its data is stored, which affects latency for your users, which services and VM sizes are available, the price, and whether you meet data-residency requirements. In Azure CLI the region is the --location parameter, and az account list-locations --output table lists the regions available to your subscription.
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