That is simply asking you to tell the software where the printer is physically located.
You can use anything you want. Could be real, or just make something up.
Such as "my room", or "Home Office", or "On the desk", or "down the hall", etc.
Or just "Printer", or you can be creative "Another dimension"
And, location is optional anyway.
just something that you can use for convenience - but it is a useful info when you several printers, or for locations on a LAN, and the printers are out of your sight.