We are located in the Orion Arm of the Milky Way galaxy, about 26,000 light-years from the galactic center.

To be more precise:

* We are in the Local Bubble, a region of low-density hot gas. This bubble is thought to have been created by supernova explosions.

* We are also within the Local Group, a collection of about 50 galaxies that includes the Andromeda Galaxy.

This is a very specific location within the Milky Way, and it's thanks to this position that we have a relatively clear view of the rest of the galaxy.