Is it correct to translate 'Ama la tua vita' from Italian to English as 'Love your life' or 'She loves your life'?

Both translations are correct, it depends on the context. If it is apparent you are talking about someone else, "She loves your life" is a good translation. If you are addressing someone, "Love your life" is relevant. If it is not clear, the latter translation is the best option, because you can translate "She loves your life" as "Lei ama

la tua

vita", putting an emphasis on the fact that you are talking about someone else.