A misty place is one that's covered in fog or haze, so you can't see very far.
When we talk about something being misty, it usually means it has a soft, cloudy feeling to it. For example, if someone says "the morning was misty", they probably mean that the air was filled with tiny droplets of water that made everything look a bit fuzzy. If you're talking about a place like a forest or a valley, it might be misty at dawn or dusk, when the sun is rising or setting and creates these mysterious, cloudy conditions. Sometimes we use "misty" to describe music or sound effects too – think of a soft, dreamy instrumental track that's got a lot of haze around it.
Covered in mist; foggy.
Example: It's very misty this morning; I can't see a thing!
