“Vacation” means to be free from obligations; leisure, release, to be empty or free. It is a respite or period away from something. It’s a state of being unoccupied or vacating. In England it is called “holiday”. Here in the US, someone goes on vacation while in England they go on holiday.
Staycation is a term combining “stay” and “vacation”. Most of the time, people may use it to say they are taking time off from work but aren’t going anywhere. Maybe they will spend time working around home.
Daycation is used to describe a day trip. Some daycation ideas: go to a local landmark, zoo, museum, spa day, tour of a local facility that offers them, waterparks, golf, shopping, sports event, etc.
Nearcation can be used to describe a vacation in which you aren’t traveling too far away. Maybe to a campsite 3 hours away, or an overnight stay in a nearby city.
The upsides: no travel headaches, less money spent, not worrying about forgetting something, no TSA rules or luggage to worry about.
The downsides: you might be too accessible through email or phone; you don’t get to explore too far outside your environs.