local
is undefined.myfunc() {
  local i=0
  ..
}In POSIX sh, you can adopt some convention to avoid accidentally overwriting variables names, e.g. prefixing with the function name:
myfunc() {
  _myfunc_i=0
  ..
}local is supported in many shells, including bash, ksh,
dash, and BusyBox ash. However, it is not specified
by POSIX.
Since quite a lot of real world shells support this feature, you may decide to ignore the warning.
ShellCheck is a static analysis tool for shell scripts. This page is part of its documentation.