That means your phone can be detected by the network. In other words they can get your GPS position. You can turn it off, however, they tell you if it's on it will help some applications run better.
they tell you if it's on it will help some applications run better.
*puts on tinfoil hat*
Yeah, their tracking applications that the FBI uses to trace your every move! It's a conspiracy I tell you!
j/k of course
I have mine set to 911 since Verizon doesn't have any GPS support. But, location has to be on for some mapping/gps programs to have full functionality. In all honesty, I really don't think cell phone companies can just track you because the location is set to on. ASFAIK, the GPS coordinates aren't actually transmitted anywhere. They are only used by the phone.
That is why for Verizon's Child Tracking program you must download a program to your phone. That is most likely the program that sends the actual GPS coordinates.