"My Location" is a feature which lets applications running on your phone, to figure out the exact/approximate geographic location that you are currently in.
For handsets with built in GPS functionality, the user's current location details(latitude/longitude) are provided by the Global Navigation Satellite System. The accuracy in this case is very high and it could locate the user in the vicinity of 10 meters or less.
But currently, most of the handsets are not GPS enabled which means that there should be an alternative to find the user's current location. Google provides a way to figure out the location details for non-GPS handsets by using the cell tower id of the network service provider that the user uses. Google maintains a database of all the cell tower ids for most of the countries and also the latitude and longitude details that belong to these cell ids. The accuracy of locating the user is in the range of 400 meters to 5 Kms based on the density of the cells in a particular area. This service is much faster and consumes less battery than the GPS service. Click for the official Google video explaining this feature.
A similar feature is provided by Google to on its Google maps for the desktop browser wherein the user's current location is determined based on the IP Address or the WiFi zone that he is connected to. Check this link for the browser and setting options.
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