The Interoperability Standard
for Industrial Automation
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Unified Architecture Technology Sample Applications
The UA Specifications Part 4 - Services and UA Specifications Part 12 - Discovery describe the purpose and operations of a local discovery server. The short explanation is that this type of server merely provides a list of available OPC UA applications to any application that queries it; where each application is running and registering (frequently) with the LDS.
The LDS (downloads below) runs as an unattended Windows background service:
Allow the UA Local Discovery Server to start Automatically.
Configure your Firewall to permit TCP port 4840 traffic.