Hello Justincredible2284,
Thanks for posting in the Apple Support Communities. We're happy to look into this with you.
We were able to find the information you're looking for in article, About privacy and Location Services in iOS and iPadOS - Apple Support The short version is the circle represents how precisely your location can be determined—the smaller the circle, the greater the precision.
How your device uses Location Services
With your permission, Location Services allows apps and websites (including Maps, Camera, Weather, and other apps) to use information from cellular, Wi-Fi, Global Positioning System (GPS) networks, and Bluetooth to determine your approximate location.
Apps that can show your location on the screen, including Maps, show your current (approximate) location using a blue marker. In Maps, if your location can’t be determined precisely, you’ll see a blue circle around the marker. The size of the circle shows how precisely your location can be determined—the smaller the circle, the greater the precision. When Location Services is active, a black or white arrow icon appears in the status bar.
Maps, directions, and location-based apps depend on data services. These data services are subject to change and might not be available in all geographic areas, resulting in maps, directions, or location-based information that might be unavailable, inaccurate, or incomplete. Compare the information provided on the device to your surroundings and defer to posted signs to resolve any discrepancies.
Learn more about Location Services and privacy.
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