1. Instead (a place, a position, or a function properly or customarily occupied by someone else); a place; especially, in the phrases in lieu, in lieu of.

Stead means to stand (someone); in good stead is to be useful or of good service to (someone).

2. Etymology: from Old French lieu, "place", from Old French leu, from Latin locum, locus, "place."

In place of; instead of.