Use an address when a human reads it
On Forms365 Web, use an address field when the value will be read or posted to. A delivery address, or the property an inspection relates to. It keeps the address as text, which is what you want when it ends up on a printed record or in a letter.
Use a location when you want the coordinates
A location field records latitude and longitude. That suits proving where something happened rather than describing it. Where a hazard was found, or which of four sheds on a rural property somebody was standing next to. Coordinates are also easier to work with downstream, because there is nothing to interpret.
What the location field does not do
On either product, the location field stores latitude and longitude and that is the whole of it. There is no map to drop a pin on, no address autocomplete, and no geofencing. If your process depends on somebody visually choosing a point on a map, this field will disappoint them, and it is better to know that before you design the form around it.
On internal list forms
Forms365 Workspace covers the same ground through the SharePoint column types your list already uses, including Location and Coordinates, plus managed metadata when the answer should come from an approved list of sites rather than being typed. Use that last one anywhere you own a fixed set of locations, because a picker of real site names beats free text that arrives spelled four different ways.
Where this usually comes up
Field work, mostly. An inspection that needs to record where it happened, or a job sheet tied to a site. Those forms tend to want a location for evidence and an address for the paperwork, and there is no reason not to have both. The field inspection walkthrough puts the whole form together, and the WHS risk assessment page covers the safety side.
Record where it happened.
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