Locations features allows out of the box to work basically on cloud* and allowing to have your team on different locations, therefore the name. It also allows storing locally or synchronizing via cloud when needed. So files don`t have to be always uploaded or downloaded.
Very useful for production which needs to be organized but need to work with external resources. I think best for asset building like Modelling and Rigging and Animation in shot production because of its lower data requirements.
* using chosen provider, which is by default Amazon S3