You need a virtualization solution that is supported on the M1 (currently Parallels preview or QEMU as far as I know). Secondly you need a distribution that supports aarch64 (Ubuntu, CentOS and some others). This should be sufficient to start with. However, all of this is in an early development stage, so several things might not work (e.g. the Parallel Tools are not available for aarch64 right now).
Kind regards Thomas