The staging site is basically a clone of a live (production) site. It's usually not visible publicly, but behind the login panel. It's a great choice for all those who like experiments but don't want to affect the live site. Thus, before making an update on the production site, you can do some tests on the staging site first.
Some hosting services allow users to create staging services where they can make necessary tests before pushing them to the live site.
What you can also do is set up a staging environment manually. This could be easily done under a sub-domain or sub-folder on your hosting and manually clone the existing site to it. It's not difficult for sure, but requires some knowledge of the server, but won't be an issue for an experienced WP user.
Finally, you could also use a local install as a staging environment. It is still just a copy of a live site, which can then be updated or changed without affecting the live site. You could then use a plugin to transfer it back to the live domain, or move it back manually.
There are some patterns so if the staging site you are actually working on will fit one of the patterns below, such registration will qualify as staging site and will not be counted towards the number of production sites registrations.
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