A village is a place where people live that's smaller than a city or town. The village where your grandparents live might have a population of only a few hundred people.
In the US, some towns, townships, and cities have smaller villages communities within them. There are also villages that are independent of any larger areas. In either case, a village is typically larger than a hamlet and smaller than a town. The majority of Indians live in villages, while in other countries (like Russia and the UK) population has moved to big cities and suburbs, away from traditional villages. The Latin source of village is villa, or "farm."