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Roblox games support three different types of Luau scripts:

Client scripts

These scripts run on the client, and the server has no visibility into their behavior. For legacy reasons, these scripts can take the form of LocalScripts or Scripts with a RunContext value of Client. Client scripts typically live in ReplicatedStorage, StarterPlayerScripts, or StarterCharacterScripts.
Server scripts

These scripts run on the server, and the client has no visibility into their behavior. Server scripts have a RunContext value of Server and typically live in ServerScriptService, the contents of which are not replicated to the client.
Module scripts

These scripts are reusable pieces of code that return exactly one value, typically a function or table (or a table of functions). Rather than duplicating code in client and server scripts, use module scripts to share code and data between the two. Module scripts often live in ReplicatedStorage, but can live elsewhere if you want to share code between scripts on the same side of the client-server boundary.