Some plays were performed in churches. These would have been mystery plays, miracle plays, and morality plays intended to instruct in The Bible or issues of morality.
Some plays were staged on special wagons set up for the purpose. These were performed in church yards sometimes. They were also staged in towns, at fairs, at crossroads where a lot of people might go by, and wherever the actors thought they could make money.
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If we are to divide medieval drama into two types, I think they would have to be religious and secular. Medieval drama is usually divided into five types. Three of these, Miracle plays, Morality Plays, and Mystery plays, dealt with religious issues, and two, Mummings and Manners plays, were secular. Please use the link below for more information.
Medieval theater included types of play that were intended to instruct people religiously. These included Morality plays, Miracle plays, and Mystery plays. As the Middle Ages came to an end, these types of plays were targeted by people opposed to the influence of the Roman Catholic Church as too Catholic, and they were mostly banned by the Catholic Church because they did not really represent it, but gave Protestants things to complain about. One type of medieval theater that survived was Mummings, which most religious people opposed for the entire Middle Ages, but were too much fun to be suppressed everywhere. They are still done today. Another type of medieval theater that survived and evolved was Manners plays, who were not religious in nature and were only suppressed from time to time as being too worldly or, during times of contagion, too attractive to crowds of people who might spread disease.
Early in the Middle Ages, there were some secular plays. Then there were plays called Mummings, that combined Christian and pagan elements, and did not adhere to the standards of the Church or authorities. About the tenth century, Miracle Plays and Mystery Plays appeared, and these had Christian themes. Not long after, Morality Plays appeared, and dealt with moral issues from a Christian point of view. In the High Middle Ages and Late Middle Ages, Manners Plays appeared, which were more of a secular nature. There is a link below to an article on Medieval Theater.
the church
Most medieval playwrights were anonymous, and we know nothing of who they were or what their condition in life was. It is quite possible that none made any money from writing plays, however. Of the few whose names are known, Adam de la Halle was a Trouvère, who was a member of the nobility and probably had no need for an income; Hrothsvita and Hildegard of Bingen were both nuns, and derived no income from their plays.