ubhayor antaram vyoma
ye rudra-parsadam ganah
Translation by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada:
Living entities who are associates of Rudra develop in the third mode of material nature, or ignorance. They are situated in the sky between the earthly planets and the heavenly planets.
Purport by His Divine Grace A. C. Bhaktivedanta Swami Srila Prabhupada:
This middle portion of the sky is called Bhuvarloka, as confirmed by both Srila Visvanatha Cakravarti and Srila Jiva Gosvami. In Bhagavad-gita it is stated that those who develop in the mode of passion are situated in the middle region. Those who are situated in the mode of goodness are promoted to the regions of the demigods, those who are situated in the mode of passion are placed in human society, and those who are situated in the mode of ignorance are placed in the society of animals or ghosts. There are no contradictions in this conclusion. Numerous living entities are distributed all over the universe in different planets and are so situated in terms of their own qualities in the modes of material nature.