Typically LiveShell 2 is used in an environment that has an internet connection.
But you can also broadcast video and audio using local mode to a closed local network.
LiveShell 2 needs internet connection to communicate with the Dashboard server for remote control. In local mode LiveShell 2 will not communicate with any outside networks and as a result of that, Dashboard is unavailable in local mode.
Please see this link for setting up local mode.