You "select" a display with the :$DISPLAY:SCREEN syntax.
So the first screen on your main display server would be :0.0
You can set the display an application launches with DISPLAY environment variable
export DISPLAY=:0.1 leafpad
Xvfb
Xvfb or X virtual framebuffer is a display server implementing the X11 display server protocol. In contrast to other display servers, Xvfb performs all graphical operations in virtual memory without showing any screen output.
However, no output is shown. This virtual server does not require the computer it is running on to have any kind of graphics adapter, a screen or any input device.
v4l2loopback - a kernel module to create V4L2 loopback devices
this module allows you to create "virtual video devices" normal (v4l2) applications will read these devices as if they were ordinary video devices, but the video will not be read from e.g. a capture card but instead it is generated by another application. this allows you for instance to apply some nifty video effects on your Skype video... it also allows some more serious things (e.g. I've been using it to add streaming capabilities to an application by the means of hooking GStreamer into the loopback devices).