Local-variable type inference is a feature introduced in Java 10 that allows developers to declare local variables without explicitly specifying their types. Instead of writing the type, you can use the `var` keyword, and the compiler automatically infers the type based on the assigned value. This can make the code cleaner and easier to read, especially when dealing with complex types. For example, instead of declaring a variable as `List<String> myList = new ArrayList<>();`, you can simply write `var myList = new ArrayList<String>();`. The compiler understands that `myList` is a `List<String>`, streamlining the coding process while maintaining type safety.