The location that you are seeing in your recent call list has to do with the information being sent by the Caller ID. Depending, as Roger indicated, where the number is assigned from, it can display the City, State area, but not a number if it is being blocked by the caller. Roger's explanation is accurate where specific prefixes are assigned to geographic areas, and can show that information in a call. Lately, at home I've been receiving robocalls which are showing coming from our local area code, when they are not. This is especially prevalent with VoIP calls, since they can put in most whatever they want in the identification area.
I believe what is troubling you has to do with what a phone is doing as far as location is concerned. No, the phone is not transmitting its GPS location to the receiver when a call is made.