Where do caterpillars live?

Answer 1

In treees and bushes in dark areas and where their food is which is leaves because the eat them to survive!
Caterpillars are the larva stage of butterflies and moths. Each species will lay eggs on specific plants: the Peacock butterfly, Inachis io (Linnaeus, 1758), uses nettles as their host plants. Cabbage White's favour Brassicas: cabbages, etc.

Answer 2

They live in hedges or bushes. They like too live in dark places too but you can mainly find caterpillars in your garden or backyard. They can live in long grass as well.