She lives in a remote area, far from civilization.

Literal

She [topic-は] removed-from-habitation place [in-に] is-living.

The expression 人里離れた (ひとざとはなれた) combines 人里 ('inhabited area, village') with 離れた ('separated from') to form a compound modifier meaning 'remote, far from where people live.' It carries a stronger sense of isolation than simply 遠い ('far') — it implies being beyond the reach of normal human settlement. The ところ here means 'place' in a general, abstract sense, and is modified by the preceding clause just as a noun would be modified by a relative clause.