Which is better Bellagio or Varenna?
Sharla
Sharla,
I suppose which one is "better" will depend on your preferences. The link that Kent provided gives a good overview of both places.
Bellagio tends to be a bit more of an "upscale" location, judging by some of the jewelry (and other) stores I've seen there. I don't believe it's listed in the Guidebooks, but the Grand Hotel Villa Serbelloni is really upscale and definitely a "splurge". Varenna tends to be more "informal", with a beautiful promenade extending along the lake from the Ferry Dock to the main part of town, along with small Gelato shops and other local businesses.
It's difficult to make recommendations for others, but either location would be great!
Happy travels!