Setting plays a pivotal role in Billy Budd; it not only serves as a backdrop but directly influences the story's atmosphere, events, and themes. The events of the narrative take place in the summer of 1797. The novella is set on the British naval war ship the H.M.S. Indomitable, which is at sea in the Mediterranean. The maritime setting of the ship is central to the plot, and Melville offers detailed descriptions of the nautical environment, particularly the harsh conditions the crew face. In turn, these descriptions, create a vivid and immersive world for the reader. The sea, with its unpredictable weather, vast expanse, and constant motion, creates a sense of isolation and vulnerability.
The H.M.S. Indomitable is essentially a microcosm of society—a closed, hierarchical environment where authority and duty are highly important. The Indomitable represents a rigidly structured and disciplined world where hierarchy, authority, and chains of command are highly important. Even the locations on the ship are significant. The officers' cabins, for example, are where important decisions are made and where Billy is accused of mutiny.
Significantly, the novella also takes place after a period of time during which the British navy experienced a high number of mutinies, including the real-life Nore Mutiny. The maritime setting allows Melville to ruminate on ideas related to duty and discipline, as well as the conflict between individuals and authority.