Don't get too excited. Language Land doesn't really exist. If it did, we imagine it would be like Disneyland, except that everything would be made of letters and all the rides would be language themed (like the sentence diagram rollercoaster). Just sayin'.
Actually, Fox in Socks doesn't have a setting at all. Fox and Knox walk from location to location—a grassy knoll here, an oddly blank room there. But nothing ever happens in a definitive place like a beach, Timbuktu, or even Earth.
Instead, the language—in effect, Fox's word game—creates and recreates the setting as needed. When Fox calls for a lake, then Fox and Knox magically find themselves at a lake to watch Luke Luck take his licks. When he needs a bottle on a noodle-eating poodle, ding, there you have it. In cases where his words don't specify a setting, then Fox and Knox find themselves transported to simple hills or oddly non-descript rooms.
In other words, the setting is simply what the words need it to be, and it changes at a moment's notice depending on what game Fox is playing. The only question left to us now: where did Fox get his extraordinary word powers, and how do we get some?