If you want the dictionary definition, just double click on any word.

In this context to live is a verb. If someone lives somewhere they are a permanent resident of that place.

For example:-

Where do you live? = What is your current address / country of residence.
When I was younger I lived in Scotland, but now I am living in Germany.

To stay is also a verb, but in this context if you stay somewhere it is temporary.

For example:

Where did you stay while you were at the conference?

When I first moved to Scotland I stayed with friends until I found a place to live.

!Note - Try not to get confused between the verb to live (rhymes with give) and the adjective / adverb live (rhymes with hive).