Those are apps that have requested your location.
You have location on, and so apps that request that info will get it.
Turn location off, and theoretically those apps that request the info can't get it.
I say theoretically, because apps have other ways of getting it even without your knowlege.
A game that requests location but is denied, yet has access to Google Play Games can get your contacts, calling and messaging info, and much more right from Google. Most likely, if you have any Google apps on your device, then Google- and anyone that asks for the info, knows your location.
Also, that little switch may or may not mean much. Google and others have been busted multiple times tracking user's location even though the user has location turned off.
These things really are just convenient little tracking devices full of toys that we all carry around with us wherever we go.
They keep us entertained while they expose us to big tech vultures.
For what its worth, I never use location, and have it off for everything that I know about.
My device still gives out my location in multiple ways, but I do what I can to make it more difficult than normal for those that want to know that info.
Honestly, it's probably a waste of effort, but who really knows?