LocalCache is local to the process, i.e. within the application's process memory. If LocalCache is enabled, object fetched from cache will also be stored in LocalCache. Every next request for that object will be served from that LocalCache (No need to fetch from out of process cache). However retrieving object for the first time will take time.
According to MSDN:
When local cache is enabled, the cache client stores a reference to
the object locally. This keeps the object active in the memory of the
client application. When the application requests the object, the
cache client first checks whether the object resides in the local
cache. If so, the reference to the object is returned immediately
without contacting the server. If it does not exist, the object is
retrieved from the server. The cache client then deserializes the
object and stores the reference to this newly retrieved object in the
local cache. The client application uses this same object.
Whereas when local cache is disabled, every retrieval request is directed to out-proc cache, resulting in fetching object from outside process's memory every time.