VPN gateways are use to connect on-premises network to an Azure virtual network and also encrypt all traffic flowing between these networks.
The local network gateway represents your local (on-premises) network and holds all configuration information on your local network settings. It's an essential component for creating the VPN connection that is needed to create a Site-to-Site connection between the Azure VNet and the local network. The virtual network gateway is directly connected to the Azure virtual network gateway and has all the relevant Azure VNet information needed to create a VPN connection.
Together these virtual private network (VPN) gateways are used to connect to on-premises networks and encrypt all traffic going between Azure Virtual Network (VNet) and a local network.
To create a local network gateway in Azure, you need to provide details of the public IP address of the local firewall and local network address space. For the Azure network gateway you need to create a Gateway subnet in the VNET and configure a public IP address for the site-site connection.
For details about Site-Site VPN creation refer to the docs https://docs.microsoft.com/en-us/azure/vpn-gateway/vpn-gateway-howto-site-to-site-resource-manager-portal
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