Henry lives in a cozy, earthy patch of soil on a small farm near the lake, His home is tucked beneath the roots of a big , old oak tree , which provides shade and protection. Henry the Worm is a very curious and adventurous little worm who lives, on the shore of a vast lake. His best friend, Finley the Fish , lives in the lake's sparkling waters . Despite their different worlds , Henry in the dirt and Finley in the water share a unique friendship .