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Options > Open to LAN
LAN means Local Area Network. LAN World on Minecraft basically means that anyone else playing from the same router/modem as you can join your world.
A LAN world means if someone is playing Minecraft using the same modem/router as you, they can come into your world and play with you.
You can.
LAN worlds are available only to people who are on your local network. They have to actually be connected to your network, for the LAN IP to make sense.