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A seating area very high up in a stadium or theater, as for a sporting event, musical performance, play, etc., which typically costs less money but has a restricted view. "Nosebleed" refers jocularly to the effects of extremely high altitudes on the body, which can often cause nasal hemorrhaging, among other symptoms. I wish you wouldn't be so stingy when you're buying tickets. I'm sick of watching football games up in the nosebleeds! I waited too long to get tickets to the concert, so all that was left was a seat in the nosebleeds way at the back.
See also: nosebleed