WiFi Only models can only “infer” their location from a database lookup of neighbouring WiFi networks for which the geographic location is known, or the geographic location of your public IP address. For static applications in urban locations, where the location of IP public IP addresses and WiFi networks are known, an “inferred” location can be relatively accurate. However, in rural locations, or when using a Cellular/Satellite/VPN connection, location accuracy of an inferred location [if it works at all] may be very inaccurate.
Your iPhone does have GPS capabilities - however, the iPhone’s derived GPS location is not shared with other devices via the tether.
You can add an external GPS receiver to your WiFi Only iPad. These are often used in marine, aviation and vehicular applications - and can be either directly connected via Lightning or via Bluetooth. Their are various third-party manufacturers, of which one is BadElf.