Geographical residence means the state/region where you live/go to school. State residency is where your parents (until you are deemed independent,) are domiciled (think home, state taxes, driver’s license, vote registration etc.)
Your state residency affects where you are eligible to receive in-state tuition (although there are exceptions such as Ohio, for example, that offers in-state tuition to any graduate of a Ohio high school, though idk the specifics,) and an admissions advantage (most public schools have to maintain a certain In-State/OOS percentage split.)
For most students, your state residency and geographical residence are the same, unless you go to a prep/boarding school or a private school in another state.
For college admissions purposes, coming from a less competitive geographical residence (AL or HI vs. CA or NY,) can benefit you in one of two ways: You’ll first be compared to fewer applicants (as at the UCs, which explicitly compare you to students from your school,) and if applying ED, are beneficial to the school in their marketing campaign to declare that they have students from all 50 states. At this point, however there’s not much you can do to change either values, so apply and hope for the best! 
Hope that helps! Good luck with admissions!