This is a very elementary question as I am just learning about abelian varieties by reading Mumford's book,
Let $X$ be a complete variety (irreducible and reducible over an algebraically closed field) and $Y$ a scheme, and $L$ a line bundle on $X \times Y$. In his book on Abelian Varieties, on p.85-87 Mumford shows there exists a "maximal closed subscheme $Y_1$ of $Y$ over which $L$ is trivial" (I'm omitting the precise definition of what this entails but it is in the first proposition in section 10 Theorem of Cube II).
This result is a strengthening (to the scheme-theoretic setting) of a result he proved on p.51 (Seesaw Theorem - provisional form) where he proved the result I mentioned above when $Y$ is a variety (as opposed to a scheme).
I'm trying to understand the nuances between the scheme-theoretic vs variety-theoretic results.
So what is a good example that would highlight the difference? For example, if $Y$ is non-reduced, by the result for varieties applied to $Y_{red} \subseteq Y$, we get a variety $Y_1'$. By taking the trivial line bundle on $X \times Y$ we see that $Y_1=Y$ so taking $Y$ to be non-reduced is a trivial example of the benefit of generalizing the result to schemes. Are there examples where $Y$ is a variety but $Y_1$ is non-reduced?