Location is where the scene takes place. There are two ways in which you can create a location.
Creating a new location
There are two way in which you can create a location.
1. In the Project Page
Clicking the + button on the Location banner will give you a form in which you can enter the details.
Ignore the Physical Location field. In a later version, this will be changed to a field where you can map a set/studio
Name: The name of the location. This will be in all caps and when you assign it to a scene it will appear in the scene heading. This is a mandatory field.
INT/EXT: You can specify if a location is an indoor one (INT), outdoor one (EXT), both (INT/EXT) or Others if none of the options apply. Usually for scenes that take place during title sequence and such you can choose Others option. By default INT/EXT is chosen for any new location.
2. While Adding/Editing a Scene
At the time of adding a scene, in the location dropdown, you are given the option to add a new location there itself. Click the '+ New Location' option in the dropdown to do this.