Earthland is the main world in Fairy Tail.
Earthland is a world relatively similar to Earth, though for the most part isn't as technologically advanced. Instead it is a world filled with magic. It also has a counterpart world from an alternate reality called Edolas, itself home to counterparts of many of the inhabitants of Earthland.
Much like Earth, humans are the dominant species on Earthland. There are two types of humans, those possessing magical abilities and those not; the latter making up most of the population. Some of those who do have magical abilities join magic guilds.
The Exceed are a race of talking feline creatures that walk on their hind legs like humans. Unlike the humans, the Exceed all have magical abilities, though those abilities are usually limited to magically sprouting wings to enable flight. Exceed are not native to Earthland, as they originally came from Edolas. Some were sent as eggs several years before the entire race was magically transferred from Edolas to Earthland, along with all other magic.
Dragons are extremely rare on Earthland, so rare that few people have ever seen them. As rare as they already were, at some point they all seemingly vanished, it is a complete mystery where the dragons went, or if they even still exist at all.