The section can be accessed by clicking the "Locations" link in the "Manage" section of the menu. It is accessible only to administrators.
Locations are used to describe the physical aspect of the organization. For example if your company has 4 offices around the world, you would have 4 different locations, each with its own timezone.
The locations can be used in many different ways, for example to separate the many rooms of a hospital in floors, or to separate the meeting rooms available for different events in different venues.
The locations can be deleted by checking the corresponding checkboxes on the left and choosing the desired action from the bottom dropdown.
Creating a new location
The fields that define a location are its name and the time-zone in which the physical location is. The time-zones are abbreviations, typically paired with a couple large cities to provide you with a general idea about this location.