Okay kiddo, so you know how there's a big important church called the Catholic Church? Well, the Pope is the leader of that church and he lives in a country called Vatican City.
But here's where things get a little tricky. Vatican City is actually its own country, kind of like the United States or Canada, but it's really really small. It's actually the smallest country in the world!
So even though it's its own country, it's kind of weird because it's inside another country called Italy. That means that the Pope isn't just the leader of the Catholic Church, but he's also like the leader of his own tiny country!
Now, because the Pope is the leader of a country, that means that the Holy See also has legal status. The Holy See is kind of like the government of the Catholic Church. It makes decisions and has authority over things like canon law (which are like the rules for the church) and diplomatic relations with other countries.
So even though it might seem a little strange that a religious leader also has a whole little country, it's actually pretty important because it gives the Catholic Church a lot of legal power and influence all over the world.