What is a "place" in album creation?

[Offerel]

When i create a new album from some selected Photos, i can enter he Album name. I can also enter a "Place". What is this "Place"? A path under Photos in Nextcloud or a geographical place somewhere on the planet? I have already updated the planets db. But when i type some letters, describing a geographical place, like "Munich" or "Paris" or "Portugal", nothing appears and completes the box or gives me a hint, what to enter. So i assume, its a path? Can i create a hierarchy here, maybe Continent, country, town or region?

This is a little bit misleading for me and i don't know, how to use this feature. It would be nice, if here is more of a description, what place means and how to use it, to make it useful.