how is "Location" data in Asset->Additional detail used in LA module?

Summary:

How is "Location" data in "Asset" -> "Additional Details" used in LA module and why do we have to set this?

What issues might we face when use of dummy data for "Location"?

Content (please ensure you mask any confidential information):

In order to create leases, "Location" data in "Asset" -> "Additional Details" is mandatory.

But in order to manage "Location" master from setup and maintenance, we need strong privileges which is not appropriate for normal users.

Therefore we like to come up with a solution for business process and would like to ask the question above for further discussion.