What is the relationship between "City or Town" in Manage Locations, and "City" in Geographies?

On the Manage Locations task you define the address of a location, specifically the "City or Town" field. Because this is a free text field, I am looking for an explanation of the relationship between what is entered in this field, and how it is related to the City Geography Type in the Geography Hierarchy, considering there doesn't appear to be any validations for what can be entered as a City or Town.

The reason I am asking is because we are using the condition builder on the Organisation Calendar Events page to restrict public holidays by City, and since we are using the City (Work Location) attribute, we need to know that the City selected will capture the values entered in the Manage Locations task.