Local entries are entries that you create and can access only with your Passpack Desktop application, and are not synchronized with your online account. They are clearly marked with a LOCAL label in your password list.
In the entry window in Passpack Desktop, tick Set as local entry only if you'd like the Synchronization procedure to completely ignore the entry. You may do this with a brand new entry, or with an existing entry.
Should you ever decide that you would like a Local entry to be available online, untick that Set as local entry only in the entry window. The entry will then appear in your password list marked as TO SYNCinstead of LOCAL.
Entries without any labels are already synchronized with your Passpack.com online account.