Share my Location is for the Device.
The family organizer sets up location sharing in Family Sharing settings. After location sharing is turned on, the organizer's location is automatically shared with everyone in the family group. Then each family member can choose whether or not to share their location. When you agree to share, your family members see your location in Find My Friends and Messages. And you can see where they're located too.
Plus, with location sharing enabled, if your device is lost or stolen, you can ask a family member to use Find My iPhone to help you locate it and get it back.
Share your location with your family - Apple Support
https://support.apple.com/en-in/HT201087
Locational Services is for the Apps
- Go to Settings > Privacy > Location Services.
- Make sure that Location Services is on.
- Scroll down to find the app.
- Tap the app and select an option:
- Never: Prevents access to Location Services information.
- While Using the App: Allows access to Location Services only when the app or one of its features is visible on screen. If an app is set to While Using the App, you might see your status bar turn blue with a message that an app is actively using your location.
- Always: Allows access to your location even when the app is in the background.
Turn Location Services and GPS on or off on your iPhone, iPad, or ...
https://support.apple.com/en-in/HT207092
