The most common and most likely answer to this crossword clue is the 5 letter word PLACE
I've seen this crossword clue in The Guardian
P
L
A
C
E
More clues leading to the result PLACE
Buddy explains!

The straight part
We know that "location" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case location = place.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does PLACE mean?
PLACE noun- (physical) An area; somewhere within an area.
- A location or position in space.
- A particular location in a book or document, particularly the current location of a reader.
- A passage or extract from a book or document.
- A topic.
- A frame of mind.
- A chess position; a square of the chessboard.
- (social) A responsibility or position in an organization.
- A fortified position: a fortress, citadel, or walled town.
- Numerically, the column counting a certain quantity.
- Ordinal relation; position in the order of proceeding.
- Reception; effect; implying the making room for.
- To put (an object or person) in a specific location.
- To earn a given spot in a competition.
- To remember where and when (an object or person) has been previously encountered.
- (in the passive) To achieve (a certain position, often followed by an ordinal) as in a horse race.
- To sing (a note) with the correct pitch.
- To arrange for or to make (a bet).
- To recruit or match an appropriate person for a job.
- To place-kick (a goal).