In the phrase:

According to this passage, this creature can be found where?

I think it is OK to say it this way, because it is referring to the passage on the worksheet that probably said something like:

This creature (probably named) can be found in California.

so the question follows the same structure.

Without the passage reference, you would more likely say:

Where can this creature can be found?

other than for emphasis as Codeswitcher wrote.

In the phrase:

According to this passage, this creature can be found where?

I think it is OK to say it this way, because it is referring to the passage on the worksheet that probably said something like:

This creature (probably named) can be found in California.

so the question follows the same structure.

Without the passage reference, you would more likely say:

Where can this creature be found?

other than for emphasis as Codeswitcher wrote.