Location taxonomy is available for Item custom post type, each Item post can be assigned to one or more Locations.
To add new or find your created Location navigate to Items > Item Locations via the main WordPress menu.
For each Location can be defined name (title), parent of Location if you are creating a parent-child hierarchy of Locations, and also description text which can tell more about created Location in short.
Using the Featured option you can mark the location as featured. In relevant blocks, you can then show on the frontend only featured locations and not all of them.
Locations can be displayed on the frontend using the Listing Locations List block.