To be brief I'd state it simply as:
"Relativistic QFTs are local" means that the interactions are local, i.e., the Hamilton density commutes with any local observable when the spacetime arguments of the corresponding operators are space-like separated. So a more concise formulation is:
Locality in QFT means that there are field operators realizing a unitary representation of the proper orthochronous Poincare transformations such that these field operators transform locally as their classical analogues and that the Hamilton density commutes with all local operators representing observables at space-like separated space-time arguments.
The locality of the unitary transformation representing Poincare trafos means that, e.g., for a vector field
$$\hat{U}(\Lambda) \hat{A}^{\mu}(x) \hat{U}^{\dagger}(\Lambda)={\Lambda^{\mu}}_{\nu} \hat{A}^{\mu}(\Lambda^{-1}x), \quad \Lambda \in \text{SO(1,3)}^{\uparrow}.$$
These properties lead to (a) a unitary Poincare covariant S-matrix and (b) the corresponding transition-probality rates obey the linked cluster principle.
The second meaning of (non-)locality does not refer to causal interactions but to correlations, i.e., as any quantum theory also a "local relativistic QFT" admits the description of "non-local correlations", described by entanglement. That means that if you prepare a quantum system in an entangled state like a momentum-polarization entangled photon pair, prepared in the state
$$|\Psi \rangle=\frac{1}{2} [\hat{a}^{\dagger}(\vec{k}_1,h=1) \hat{a}^{\dagger}(\vec{k}_2,h=-1)-\hat{a}^{\dagger}(\vec{k}_1,h=-1) \hat{a}^{\dagger}(\vec{k}_2,h=1)]|\Omega \rangle,$$
you can register the two photons at very far-distant places A and B and you have a 100% correlation for the polarization states, i.e., if the observer at A finds his photon having ##h=1##, then the observer at B finds his photon having ##h=-1## and vice versa, although both photons are completely unpolarized before the measurement. It doesn't matter who measures his photon first, the 100% correlation of the polarizations is observed although the polarizations before the measurement are completely indetermined.
This together with the fact that a local relativistic QFT cannot describe any faster-than-light signal propagation (due to the microcausality built in this kind of relativistic QFTs) one must conclude that the correlation is not caused by the local measurements on each photon at far distant places but it is due to the preparation in the entangled state.
I'd prefer to call the "non-locality of correlations" rather "inseparability", as Einstein formulated it. Then a lot of misunderstanding were avoided by using different words for the different two meanings of locality vs. non-locality.