Setting encompasses many elements, and so it is with Alice in Wonderland.
Firstly, the question of locality should be addressed. This refers to the place in which the story is set. In this regard, the story has two localities: the real world in which Alice finds herself on the banks of a river and the imaginary or dream world that she explores whilst sleeping. She discovers this fantasy world in her dream when she follows a strange rabbit muttering by himself and looking at a watch, which he took out of his waistcoat-pocket, down a rabbit hole. Alice returns to the real world when she wakes up with her head in her sister's lap at the end of the novel.
Secondly, at what time do the events depicted in the novel occur? This may be a reference to the time of day, the month, year, decade season etc. In this novel there is no definitive indication of which time of day the events unfold in either the real or dream world. It is clear, however, that everything happens during daytime since there are no references to the dark or night. It furthermore seems as if (in the real world), the season could be autumn as one can judge from the following line:
... her sister, ... was gently brushing away some dead
leaves that had fluttered down from the trees upon her face.
It would be uncommon for dead leaves to flutter down during Spring or Summer. It clearly cannot be winter for the weather was pleasant enough for Alice and her sister to be spending time at the bank of a river, in all probability, after a picnic.
Another aspect to consider is elapsed time. It is clear from the text that in the real world, Alice had had quite a lengthy dream and must have been asleep for some time. her sister remarks:
"Why, what a long sleep you've had!"
In the dream world, time seems to have gone very quickly, since Alice had experienced a number of adventures and had met quite a few characters. It is clear though, that all the events occurred in one afternoon or morning. Time was thus compressed for her to have experienced so much.
Since this is a fantasy novel, it is not necessary to explore other elements related to setting such as geography, historical significance, the social or cultural environment, population or ancestry. These do not play a major role in understanding the novel and can thus be ignored.