Location tags allow a podcaster to tag the location of editorial focus for the podcast and/or podcast episode. It is not meant to note the location of the recording. 

For example: If you had a podcast about the Pittsburgh Penguins Hockey team, the podcast location tag would be Pittsburgh, PA. If one of your podcast episodes was about a recent game with in Washington D.C. against the Capitals, then that episode location tag would be Washington D.C.

Location tags, Soundbites, and TXT are advanced features that can be enabled under the "Settings" tab.

Once you have enabled Location tags you will be able to select your podcast location in your edit podcast settings, and your podcast episode location when adding a new episodes.