Local I/O generally means that it's in the same chassis as the processor and is accessed through the back-plane.
Remote I/O is just that, it's just I/O with no processor that is remote from the local chassis. It will have some sort of remote I/O (RIO) scanner or adapter to handle the communications with the processor or remote I/O adapter in the local chassis.
Yes,regular I/O hardware can be used remotely.
Flex I/O is an Allen Bradley modular remote I/O system that can be used with most any AB platform and RIO Protocol. It can be readily identified by sight.