territorial
Relating to a particular area, region, or sovereign territory.
Zwischen den beiden Ländern gibt es territoriale Streitigkeiten.
There are territorial disputes between the two countries.

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Relating to a particular area, region, or sovereign territory.
Zwischen den beiden Ländern gibt es territoriale Streitigkeiten.
There are territorial disputes between the two countries.

The adjective 'territorial' (territorial) is derived from the noun 'das Territorium' (territory), which means 'Gebiet' (area) or 'Hoheitsgebiet' (sovereign territory). The ending '-al' is a typical way to form an adjective from a noun.
Jeder Staat hat die Kontrolle über sein eigenes Territorium.
Every state has control over its own territory.
You can recognize the meaning from the context. If the topic is politics, countries, or borders, the geographical meaning is intended. If the topic is animals and their behavior, the biological meaning is intended.
Die Regierung erhebt territoriale Ansprüche auf die Inselgruppe.
The government is making territorial claims to the group of islands.
In political and legal contexts, 'territorial' (territorial) is often used in fixed expressions, for example 'territoriale Integrität' (territorial integrity, the inviolability of a state's territory) or 'territoriale Gewässer' (territorial waters, a state's coastal waters).
Die territoriale Integrität des Landes ist durch den Konflikt bedroht.
The territorial integrity of the country is threatened by the conflict.
local
'lokal' and 'territorial' both refer to places or areas. 'lokal' is more general and more useful in everyday language: it means something at a specific place or in a limited region. 'territorial' sounds more formal and puts more emphasis on an area with boundaries, for example in politics, administration, or sovereign territories. In biology, 'territorial' also describes animals that defend their territory. Learners may confuse the words because both are spatial. When it is simply about something local or on site, 'lokal' is more natural. When a clearly defined area or territory is important, 'territorial' fits better.

Der Hund zeigt territoriales Verhalten, wenn fremde Tiere in den Garten kommen.
The dog shows territorial behavior when unfamiliar animals come into the garden.
Die lokalen Nachrichten berichten heute über den neuen Bahnhof.
The local news is reporting today on the new train station.