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The setting of a work of literature can refer to several things: the timer period; the geographic area; the weather; the surroundings; the furniture; etc. Everything that pertains to WHERE the drama happens is considered part of the setting. Obviously the setting performs one of the biggest roles in the importance and the impact of a work of literature. If Hamlet were set in pre-historical times where swords and poisons didn't exist, the work wouldn't have a great effect on society to this day but because the setting made the drama possible, Hamlet is referred to in every day language. The setting isn't usually the main operative in a work, but allows it to exist. For example if Pride and Prejudice took place in Victorian Era Russia then the novel would not have unfolded in the way that it did. Historical fiction is a genre where setting is the most important aspect  of the novel, but our works this year have been set in the time where they were written, so they fall into the categories of drama or satire, not historical fiction.