Definition
A mental visualization of a pleasant location, performed in order to avoid thinking or dealing with something unpleasant or painful.
Any place (normally, one's home or some part thereof) regarded (by its owner or tenant) as a place of peace, love, fun, and enjoyment.
How People Actually Use It
place inside all of us where we are all happy and get the warm fuzzies. our happy places are insulated from the shitheads that make up just about everyone we encounter.
"i'm in my happy place and i'm not mad at the world anymore!"
Source: Urban Dictionary